Siam Cement Group (SCG)

Construction, Chemicals
TB: SCC
Thailand
SCG

As of June 8, 2020, SCG is listed on the Pennsylvania Department of General Services Iran Free Procurement List. Entities included on this list are ineligible to enter into a contract with the Commonwealth of Pennsylvania for goods and services worth at least $1,000,000 per sections 3501-3506 of the Commonwealth Procurement Code, 62 Pa. C.S. §§ 3501-3506.

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"Before sanctions, European banks such as HSBC, Société Générale, BNP Paribas and Deutsche Bank invested $10bn in petrochemical projects, which Iran used to import technology. Currently the only foreign production partner is SCG, of Thailand, which has a contract with a polyethylene company worth about €300m.” (Financial Times, “Iran says investors spooked by warnings on sanctions violations,” 2/9/14)

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“The Siam Cement Group (SCC) has entered into a $225 million joint venture in Iran to produce HDPE with the production capacity of 300,000 ton per year, and is expected to start commercial operation by the first half of 2008. SCC will retain a 38% stake in the project, while National Petrochemical Company of Iran, Itochu Corporation of Japan, and National Petrochemical Company of Thailand, all of whom are experienced in the petrochemicals industry, will hold stakes of 40%, 12%, and 10%, respectively. SCC?s investment in equity will be approximately $26 million or 1,040 MB. Moreover, the project?s risks have been managed with the insurance coverage issued by the Multilateral Investment Guarantee Agency (MIGA) and the Nippon Export and Investment Insurance (NEXI). MIGA is a unit of the World Bank Group. This initiative is in line with SCC?s strategy to gain access into the middle-east region which contains the world?s lowest cost petrochemicals feedstock. In particular, the HDPE plant will derive its feedstock from Iran olefins crackers, which is considered to be globally competitive and are of great importance to their national petrochemicals program. Hence, the project is enhanced with an integrated feedstock supply and committed long term viability. Furthermore, this investment will allow for increased production capacity, in response to the ever increasing global demand of petrochemicals products, as existing polyolefins plants are currently running at full utilization.” (SCG, “IR News & SET Notice,” 6/2/05)