Siam Cement Group (SCG), Thailand's largest cement and industrial conglomerate, is pressing forward with a feasibility study on a potential joint venture with PTT Global Chemical in the olefins and polyolefins sector.
The study is expected to conclude by September 2026, said Sakchai Patiparnpreechavud, president of SCG Chemicals, a subsidiary of SCG.
He said the project aims to strengthen Thailand's petrochemical supply chain and enhance industry competitiveness.
SCG executives acknowledged the global economic outlook in the second half of 2026 remains difficult.
Thammasak Sethaudom, president and chief executive of SCG, cited the ongoing war in the Middle East, resulting in energy price volatility and disruptions to supply chains.
Inflationary pressures and the impact of a "super El Niño" weather pattern could further strain economies and food security, he noted.
To mitigate risks, SCG's chemicals business has focused on diversifying feedstock sources away from the Middle East, tightening cost management and expanding sales of high value-added products.
The company believes these strategies will help it adapt to ongoing uncertainty, said Mr Thammasak.
SCG's cement, building materials, and decorative products businesses reported effective cost management and continued efforts to meet customer demand across Southeast Asia, while exploring new partnerships to support growth.
SCG reported revenue of 260 billion baht and profit of 17.8 billion in the first half of 2026, while second-quarter revenue tallied 136 billion baht and profit totalled 11.5 billion.
Cash reserves rose to 76.8 billion baht at the end of June.
The company allocated an investment budget of 30 billion baht for 2026, with 11.1 billion already spent on capacity expansion and partnerships.
Looking ahead, SCG plans to accelerate its transformation strategy through 2027.
Key initiatives include advancing the ethane feedstock enhancement project at the Long Son Petrochemicals complex in Vietnam, restructuring operations and adopting robotics and artificial intelligence to improve efficiency.
The company expects these measures to drive sustainable growth and strengthen its position in Southeast Asia's industrial landscape.
