Thailand’s petrochemical industry is set for a major shake-up.
SCG Chemicals Public Company Limited (SCGC) and PTT Global Chemical Public Company Limited (GC) have declared plans to integrate their olefins and polyolefins businesses in a strategic move targeted at forming a global-scale industry player.
The proposed partnership will pool the companies’ production capabilities, feedstock flexibility, technology, innovation and global market networks to build a more potent, more competitive competitive business. The integrated entity is likewise anticipated to rank the among world’s top 10 polyolefins manufacturers, reinforcing Thailand’s position in the worldwide petrochemical market.
Beyond increasing manufacturing scale, the move is designed to strengthen Map Ta Phut’s role as Thailand’s petrochemical industrial base and transform it right into a regional production hub, at the same time as developing new opportunities for downstream industries, inclusive of small and medium-sized enterprises (SMEs).
Narongsak Jivakanun, Chief Executive Officer of GC, said, “This partnership goals to construct on Map Ta Phut’s position as Thailand’s petrochemical industrial base and develop it into a regional petrochemical production hub.
“By linking our production capabilities with the research and development expertise of both GC and SCGC, we will develop products and solutions that meet the requirements of downstream industries. This will support Thai businesses, along with SMEs, in adding value to their products and reinforcing their competitiveness in both domestic and export markets.”
Sakchai Patiparnpreechavud, Chief Executive Officer & President of SCGC, said, “We are bringing collectively the distinct and complementary strengths of the two organizations to form a competitive business capable of sustainable development.
“These strengths range from feedstock flexibility and production capabilities to technology, development, and the development of high value-added products that meet the requirements of businesses and downstream industries. In terms of manufacturing capacity, this integration will support elevate Thailand right into a regional petrochemical hub and bring the integrated business among the world’s top 10 polyolefins manufacturers, enhancing its abilities and competitiveness amid the demanding situations and volatility of an ever-changing worldwide market.”
The partnership brings collectively complementary strengths across the petrochemical value chain.
GC contributes expertise in controlling a flexible and various feedstock mix, including naphtha, LPG, propane and ethane. Its refinery business also offers an additional layer of feedstock supply security, supporting the company navigate uncertainty and volatility in worldwide energy and petrochemical markets.
SCGC, meanwhile, brings its expertise in high value-added (HVA) products, technology and innovation, back by sturdy research and development capabilities. Through its i2P Center (Ideas to Products), the company works carefully with customers to turn business challenges and creative thoughts into commercially possible, market-ready products.
The integrated business will also draw on the companies’ global purchaser base and international market networks to respond more effectively to shifting demand and capture growth possibilities, mainly across ASEAN.
With manufacturing scale, diversified feedstock capabilities, technological expertise and stronger market access at its core, the partnership is positioned as a strategic move to reinforce Thailand’s petrochemical industry, help the growth of downstream businesses and improve its resilience against an increasingly volatile worldwide market.
