The Siam Cement Public Company Limited (SET: SCC) has informed the Stock Exchange of Thailand that the geopolitical tensions in the Middle East region, particularly around the Strait of Hormuz, a crucial route for oil and natural gas transportation, have impacted the supply chain. This has led to limitations in the procurement of naphtha and propane, key raw materials for the production of olefins plants of the chemicals business.
Following an assessment of the protracted and uncertain situation, which has resulted in some raw materials not being able to be transported to the destination country as planned, it has become necessary to temporarily suspend operations at Rayong Olefins Co., Ltd. (ROC), a subsidiary of SCC in the chemicals business, in response to this force majeure event.
ROC has already declared force majeure to its business partners and customers in accordance with the rights stipulated in the relevant contracts. The temporary suspension of ROC’s plant operations is estimated to incur a fixed cash cost of approximately THB 150 million per month. This is due to ROC being a highly efficient plant operating with automation and digitalization technologies.
The chemicals business continues to closely monitor the situation and adjust its plans to align with this uncertain environment, prioritizing the interests of its customers and all stakeholders.
Aside from the temporary shutdown of the ROC plant mentioned above, the operations of other plants within the chemicals business, as well as SCG’s other businesses, continue as usual, with adjustments being made to adapt to this uncertain situation.
SCC has informed that SCG maintains a strong financial position with sufficient cash on hand to manage a prolonged situation. SCG’s Adjusted EBITDA for 2025 totaled THB 55,012 million (of which approximately THB 4,000 million was contributed by the chemicals business, therefore, the temporary shutdown of the ROC plant is not expected to significantly impact the overall business). SCC will keep the public informed of any significant developments.
