Thailand's Siam Cement Group (SCG) announced plans to reopen its core plastics plant in Vietnam in mid-2027 after suspending operations due to the closure of the Strait of Hormuz [1]. According to CEO Thammasak Sethaudom, the company has faced significant challenges in obtaining key inputs, particularly naphtha, which is an essential oil-derived material used in plastics production [1]. As part of a broader diversification strategy to reduce dependency on Middle Eastern feedstock sources, SCG is halving its reliance on Middle East supplies and shifting toward alternative sources, specifically utilizing US ethane for plastic production [1]. This strategic pivot reflects the company's response to supply chain disruptions caused by the Hormuz Strait closure and represents a significant operational adjustment for the Thai cement and chemicals conglomerate.
CONCLUSION
SCG's planned mid-2027 reopening of its Vietnam plastics facility signals a recovery from Hormuz-related supply disruptions, though the company's shift toward US ethane and reduced Middle Eastern feedstock dependency indicates a structural change in its supply chain strategy. The diversification move suggests SCG is adapting to geopolitical risks while seeking more stable, alternative sourcing arrangements.