SCGC Rolls Out Proactive Strategies, Enhances Competitiveness, Accelerates Development of HVA and Green Polymer to Seize Opportunities in Regional Petrochemical Market Recovery

Bangkok – 21 May 2025 : SCG Chemicals, or SCGC, led by Sakchai Patiparnpreechavud, Chief Executive Officer and President of SCG Chemicals Public Company Limited, has announced proactive short- and long-term strategies aimed at enhancing competitiveness to capitalize on the recovering regional petrochemical market. SCGC is confident in responding to all market situations, emphasizing the development of High Value-Added Products & Services (HVA) and Green Polymers. Additionally, SCGC is accelerating the LSPE project, which is expected to be completed by the end of 2027.

Sakchai Patiparnpreechavud, Chief Executive Officer and President of SCGC, said, “The petrochemical market moves sideway, as evidenced by the product spread (product-to-feedstock price), which has stayed consistent from Q4/2024 through Q1/2025. The ongoing trade war between the United States and China has provided short-term benefits due to declining oil prices. Nevertheless, the situation requires continuous close monitoring, as policies may change unexpectedly. In recent months, several producers have reduced their production capacity due to high operating costs, resulting in the product spread not declining further and expected the petrochemical cycle has already at rock-bottom level.

“The current petrochemical cycle has been notably more severe and prolonged than previous trough, driven by several factors including the COVID-19 pandemic, fluctuations in oil prices, the global economic slowdown, geopolitical tensions, and the transition of certain countries from importers to producers and exporters. Nevertheless, SCGC remains resilient in managing these challenges by continuously adjusting its business strategies in response to the changing market environment. The company emphasizes proactive approaches both in the short-term and the long-term to enhance competitiveness and create sustainable growth opportunities. The short-term strategies include: 1) reducing feedstock costs, working capital, and expenses through the implementation of digital technologies and AI; 2) accelerating the development of High Value-Added Products & Services (HVA) and Green Polymers; 3) rapidly expanding comprehensive service solutions; and 4) expanding the PVC fabrication business. The long-term strategy by enhancing  ethane feedstock at the LSP plant in Vietnam (LSPE Project), by lowering feedstock cost and elevate SCGC’s long-term competitiveness,” added the Chief Executive Officer and President of SCGC.

“High Value-Added Products & Services, or HVA, remain a key strength for SCGC, underpinned by continuous innovation to address everyday consumer needs as well as requirements across industries, including polymers for food packaging, automotive components, structural work, and building materials. Notably, despite the ongoing petrochemical trough, the HVA segment continues to be well-accepted in the regional market.

“In addition, SCGC is accelerating the development of environmentally friendly polymers marketed as SCGC Green Polymer. These products are certified by the internationally recognized Global Recycled Standard (GRS), and produced using advanced recycling technologies combined with proprietary formulations designed to meet diverse application needs, such as high-quality, odorless recycled plastic resin for packaging, as well as high-quality recycled plastic resin for automotive parts and electrical appliances. SCGC also continues to expand collaboration with key business partners and leading brands, including Unilever, Lion, Kao, JBP, and HomePro.”

The Chief Executive Officer and President of SCGC added, “SCGC is also expanding into new businesses to create growth opportunities and broaden its customer base. An example of this expansion is the Industrial Service Solutions business, leveraging the company’s engineering and technological expertise in machinery management to develop new ventures. One notable initiative is the development of ‘DRS by REPCO NEX’ (Digital Reliability Service Solutions), the world’s first integrated smart digital solutions provider for industries. DRS offers comprehensive Asset Performance Management services, such as fully integrated smart digital maintenance, digital transformation, and digital platforms to support renewable energy management.”

“Regarding the progress of the LSPE project, earlier this year, the company accelerated its efforts and successfully completed three significant milestones: 1) signing a long-term contract for ethane sourcing and an export terminal, 2) signing charter agreements for five Very Large Ethane Carriers (VLECs), and 3) signing an Engineering, Procurement, and Construction (EPC) contract for ethane storage tanks. Currently, detailed work is proceeding according to schedule, with project completion expected by the end of 2027,” concluded the Chief Executive Officer and President of SCGC.