Thailand's Siam Cement Group (SCG) has warned that prolonged conflict in the Middle East could increase global energy prices and disrupt raw material supplies, adding to cost pressures for industrial manufacturers.
Chief executive Thammasak Sethaudom said continued instability could affect oil supplies and drive up prices for crude oil and petrochemical feedstocks such as naphtha, increasing operating costs across the group's businesses.
SCG has already experienced supply chain disruptions, forcing temporary shutdowns at its Long Son Petrochemicals complex in Vietnam and an olefins plant in Rayong, Thailand. The company expects both facilities to resume operations in the second half of 2026.
To reduce supply risks, SCG said it has diversified its raw material sourcing, with more than half of imports now coming from regions outside the Middle East, including the Americas and Africa.
