Thailand’s SCG studying restructuring of chemicals business

SINGAPORE (ICIS)–Siam Cement Group is studying a potential restructuring of its chemical business, including the possibility of a public offering of its shares, the Thailand-based producer said late on Wednesday.

This feasibility study for the restructuring is expected to be completed by the end of 2022, the company said in a filing to the Stock Exchange of Thailand.

The restructuring is aimed at furthering growth opportunities in the chemicals business, “such as a potential to further expand capacity in ASEAN”, SCG said.

SCG in the same statement said that it has signed a share purchase agreement on 27 April to acquire a 70% stake in Portugal-based Sirplaste.

Plastic recycling company Sirplaste has an annual capacity of 36,000 tonnes and produces and sells recycled plastics to customers in Portugal and Europe.

The transaction is expected to be completed by the end of 2021. Existing Sirplaste  shareholders will continue to hold a 30% stake in Sirplaste and co-manage the company with SCG Chemicals.

“Investment in Sirplaste is one of SCG Chemicals’ important steps into plastic recycling business, which will lead to further opportunities in the development and improvement of recycling technology, as well as an expansion of sales channels in European market,” the company said.