On Thursday, the share price of PTT Global Chemical Public Company Limited (SET: PTTGC) at the time of 11:05 a.m. was at THB 39.25, a THB 1.50 or 3.97% increase with a total trading value of THB 769.08 million.
Meanwhile, the share price of The Siam Cement Public Company Limited (SET: SCC) at the same time was at THB 237, a THB 9 or 3.95% increase with a total trading value of THB 2,961.55 million.
The surge in share prices followed a report of PTTGC and SCC signing a non-legally-binding Memorandum of Understanding (MoU) to jointly study the feasibility of establishing a Joint Venture in the olefins and polyolefins value chain in Thailand, covering assets in the polyethylene (PE) and polypropylene (PP) sectors.
This collaboration aims to improve efficiency and strengthen the value chain in the petrochemical industry. PTTGC has strengths in access to ethylene (Ethane) feedstock, which offers a cost advantage, and has the potential to enhance the efficiency of upstream businesses with competitive costs. Meanwhile, SCC brings expertise in the development of high value-added (HVA) products in downstream businesses.
The synergy between the two companies could enhance feedstock flexibility and efficiently raise profit margins across the entire value chain.
The scope of this project is limited to assets in Thailand and is currently at the preliminary feasibility study stage, which is expected to take approximately six months before proceeding to the next step for further review and approvals as per the subsequent process.
