PTT Global Chemical Public Company Limited (SET: PTTGC) has informed the Stock Exchange of Thailand that on April 29, 2026, the company has entered into a non-binding Memorandum of Understanding with SCG Chemicals Public Company Limited (SCGC) to comprehensively explore a potential strategic formation of a joint venture of their respective olefins and polyolefins (Polyethylene, Polypropylene) businesses in Thailand.
The scope of the potential joint venture includes the company’s olefins and polyolefins assets in Thailand, and SCGC’s olefins and polyolefins business units in Thailand, including crackers, polyethylene (PE) and polypropylene (PP) production facilities, as well as relevant SCGC’s joint venture companies.
The objective of this potential joint venture is to establish a leading petrochemical player in the region, reinforcing the global competitive advantage of Thailand’s integrated infrastructure. The potential joint venture is expected to enhance operational excellence by leveraging greater scale and advantaged feedstock position with strengthened downstream capabilities in higher-value, differentiated products. These efforts will create a broader and more resilient product portfolio mix.
The MoU is preliminary and non-binding. Any potential transaction remains subject to the results of due diligence, further negotiations, execution of definitive agreements, and receipt of the relevant corporate and regulatory approvals including approval from the Trade Competition Commission of Thailand (if applicable).
The evaluation of the potential joint venture is expected to be completed within 3Q2026. During this period, the companies remain committed to comply with all applicable laws and regulations, including competition law.
