Thailand’s GC and SCGC Plan $5.5 Billion Petrochemical Joint Venture to Counter China’s

Thailand’s leading petrochemical companies, PTT Global Chemical (GC) and SCG Chemicals (SCGC), have announced plans to establish a major joint venture combining petrochemical assets valued at approximately 180 billion baht. The proposed partnership aims to strengthen Thailand’s competitiveness amid increasing petrochemical production and oversupply pressures from China.

Announced on October 29, 2026, the venture will combine the companies’ domestic olefins and polyolefins operations, creating an integrated business with an annual olefins production capacity of approximately 7.1 million tonnes.

Under the proposed arrangement, GC will contribute assets worth 100 billion baht, including facilities producing 3.7 million tonnes of olefins annually, securing a controlling 56% stake. SCGC will contribute assets valued at 80 billion baht and retain the remaining 44%.

The companies intend to seek approval from Thailand’s competition authorities during the first half of 2027 before proceeding with the transaction.

The joint venture aims to become Southeast Asia’s largest polyolefins producer by production capacity and rank among the world’s top ten manufacturers.

SCGC will contribute major production facilities, including Rayong Olefins, Map Ta Phut Olefins and Thai Polyethylene, alongside investments in related petrochemical businesses.

GC’s contribution will include five olefins plants, polyethylene production facilities and its investment in HMC Polymers.

The partnership is expected to generate annual operating benefits of approximately US$150–200 million through improved efficiency, resource optimization and integrated production management.

Around 30% of the anticipated benefits could materialize during the first year, with full operational advantages expected within three years.

The venture also targets dividend distributions representing at least 60% of net profits.

The proposed consolidation reflects Thailand’s strategy to strengthen industrial competitiveness, improve production efficiency and respond to expanding Chinese petrochemical supply across regional and international markets.