Combining the Strengths of Two Leaders to Create New Competitive Advantages for Thailand’s Petrochemical Industry
GC brings advantages and expertise in managing a flexible and diverse feedstock mix, including naphtha, LPG, propane, and ethane. Its refinery business also enhances feedstock supply security and its ability to respond to uncertainties in global energy and petrochemical markets. These capabilities are complemented by research and product development expertise that addresses customers’ needs and applications.
SCGC, meanwhile, brings strengths in high value-added (HVA) products, technology, and innovation, together with expertise in product research and development. Working closely with customers, SCGC translates business challenges and creative ideas into market-ready products through its i2P Center (Ideas to Products), an integrated innovation center.
Combining these strengths will create greater opportunities to develop high value-added products, expand the customer base, and introduce new solutions for industries with growth potential, such as automotive, solar energy, construction materials, and specialized industrial products. A stronger upstream foundation will, in turn, strengthen downstream businesses.
The combined business will also benefit from a worldwide market network and customer base, enhancing its ability to respond to market demand, particularly in ASEAN, where long-term growth opportunities remain.
Leveraging the Map Ta Phut Manufacturing Base to Improve Efficiency and Cost Competitiveness
Another key advantage is the proximity of the two companies’ manufacturing facilities in Map Ta Phut, Rayong Province, a major petrochemical industrial hub in Thailand.
The partnership will enable more efficient management of feedstocks and production processes, as well as shared use of infrastructure, including feedstock pipelines, utilities, and production support systems. It will also facilitate knowledge sharing and the adoption of best practices from both companies.
These benefits will enhance cost competitiveness, improve asset utilization, and increase business flexibility—capabilities that are particularly important as the global petrochemical industry continues to face overcapacity and market volatility.
Beyond operational improvements, the partnership also aims to build a stronger financial position by enhancing profitability and cash generation to support future investment and growth.
New Joint Venture Structure: GC to Hold 56% and SCGC 44%
Under the proposed structure, the two companies plan to establish a joint venture in which GC will hold a 56% stake and SCGC a 44% stake, through a share swap with no cash consideration.
The transaction will encompass their olefins and polyolefins assets and businesses in Thailand, including equity interests in related joint ventures.
This structure is designed to enable the new joint venture to manage the relevant resources and assets efficiently and make business decisions with greater agility, under a governance framework aligned with the respective shareholdings.
The two companies plan to proceed with the relevant steps and expect to seek shareholder approval in December 2026. They will then work to fulfill the conditions precedent (CP), including obtaining approvals from the relevant regulatory authorities during the first half of 2027, before undertaking the restructuring. Subject to shareholder and relevant regulatory approvals, and fulfillment of the stipulated conditions precedent, the joint venture is expected to be established in the second half of 2027.
The ultimate goal of this partnership is not only to create a larger business, but also to build a stronger, more competitive business that elevates Thailand’s petrochemical industry on the global stage.
