New production capacity is to come onstream at SCG Chemicals in Q1-10, boosting capacity from 1 mln tons to 1.8 mln tons. The plant to be located at Rayong will produce 400,000 tpa of high-density polyethylene and 400,000 tpa of polypropylene. The manufacturer is currently experiencing deteriorating demand in domestic markets in line with the global economic meltdown. Domestic demand growth for polypropylene is projected to fall almost 5% on plummeting performance of the automotive and electronic industries. The packaging sector will increase growth for polyethylene by about 0.5-1%. Thailand's leading chemical manufacturer plans to expand sales by exploring overseas markets to use the additional capacity, upping exports from the current 30% of production to over 50% to countries with continuing robust demand like China, India as well as Southeast Asian nations.