SCC Partners with Japan’s Denka in EV Battery Business

The Siam Cement Public Company Limited (SET: SCC) announced on Thursday that SCG Chemicals Public Company Limited (SCGC), a wholly owned subsidiary of SCC, has entered into a joint venture agreement with Denka Company Limited (Denka) of Japan to produce and sales business of acetylene black. 

Denka will hold a majority 60% stake in the project, while SCGC will hold the remaining 40% stake in the joint venture. With facilities in Rayong, Thailand, and the production capacity of approximately 11,000 tons per annum, the facility is expected to start-up at the beginning of 2025. Details of this investment are expected in early 2023, once the final investment decision (FID) has been made. 

Denka is a global technology leader in acetylene black, a conductive material used in EV lithium-ion batteries and high-voltage power transmission cables. The raw materials from SCGC (Ethylene, Acetylene and Ethane) will be provided by SCGC’s olefins crackers that produces the Denka’s acetylene black products (DENKA BLACK) to achieve high purity and excellent conductivity characteristics. 

This joint venture is aimed to capture the strong growth of lithium-ion batteries for the EV market. It further aligns with SCGC’s strategy to elevate its HVA portfolio to capture the megatrends. The joint venture with Denka reaffirms SCGC position as a strategic partner of choice, with decades of proven success with global partners. 

Denka is a company with over 100 years of history in Japan. In the medium-term management plan, Denka is promoting specialization and focusing on healthcare, environment / energy, and high value- added infrastructure businesses. Denka is also promoting ESG management and carbon neutrality with the SDGs as its compass.In 2021, Denka has recorded the net sales of approx. 113,000 million Baht, net income of approx. 7,700 million Baht and total assets of approx. 164,000 million Baht. 

SCGC is a leading Chemicals player in ASEAN, operates in Thailand, Indonesia, and Vietnam. It has 4 growth pillars consisting of (i) ASEAN chemicals leadership, (ii) strength and growth ASEAN Vinyl leadership, (iii) global leader in sustainability through green polymers platforms, and (iv) strong portfolio of High-Value Added (HVA) products. SCGC’s investment criteria is over the chemical cycle of multiple years.