What was the outcome of PTTGC's full acquisition of GC Polyol Company, and why was the Rayong polyol unit sealed?

PTTGC completed the full acquisition of GC Polyol Company on July 8 by purchasing the minority stakes held by Sanyo Chemical Industry and Toyota Tsusho, raising its ownership from 82.1% to 100%. As a result, PTTGC formally sealed its polyol production unit in Rayong, Thailand. The sealing decision was driven by persistent financial losses stemming from chronic global oversupply in the polyol market—where industry-wide operating rates hover around 60%—rendering the Rayong facility unprofitable despite its 180,000-ton-per-year design capacity.

How does PTTGC plan to manage the sealed polyol unit, and what are the associated financial implications?

PTTGC will not permanently scrap the Rayong polyol unit; instead, it will undergo comprehensive mechanical maintenance to remain in a 'ready-to-restart' condition. To cover related costs—including employee severance, long-term preservation, and other shutdown-related expenses—PTTGC will set aside a dedicated provision of 1.8 billion Thai baht. The sealing is expected to reduce annual losses by approximately 200 million baht and offset about 50 million baht per year in maintenance costs for the idled equipment, while the upstream propylene oxide plant continues normal operations and sells its output externally to minimize overall supply chain losses.

PTTGC Seals Polyol Unit in Rayong After Full Acquisition

Jul 31, 2026

PTTGC fully acquired its joint venture and sealed its 180,000-ton polyol plant in Rayong due to market oversupply. The facility will be maintained for potential restart, saving costs while upstream propylene oxide units continue normal operations.

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