Leading ASEAN industrial conglomerate SCG has reached an agreement to buy PetroVietnam’s 29 per cent in the long-delayed Long Son Petrochemical Complex, leaving it king of the hill.
This step once more confirms SCG’s determination to implement the petrochemical complex that has been delayed for more than 10 years now.
According to Roongrote Rangsiyopash, president and CEO of SCG, the group has been investing in Vietnam for more than 20 years.
“Long Son Petrochemical Complex (LSPC) is our latest investment in Vietnam and is also positioned as Vietnam’s first petrochemical complex. LSPC will produce an important supply for the manufacturing industry which will in turn support Vietnam’s industrial and economic development. This will also be in line with the national economic development plan,” Rangsiyopash commented.
The Vietnamese economy, according to Rangsiyopash, is on an impressive growth path and LSPC is expected to encourage long-term investment in related industries throughout the value chain, as well as improving a competitive standard of products that will lessen the need to import petrochemical products.
Moreover, SCG also believes that this project will support the growth of downstream businesses in Vietnam and play a vital role in supporting long-term economic growth, as well as improving the quality of life for people in Vietnam and across the region. LSPC was initiated by PetroVietnam in 2008 with the participation of SCG, Qatar Petroleum International, and state-run chemical group Vinachem.
However, it was not until February 2018 that the project officially started construction by the remaining two investors, PetroVietnam and SCG. The Thai investor also increased the total investment capital of the complex to $5.4 billion from the previous $3.8 billion.
According to SCG, the engineering, procurement, and construction contract of the complex will be implemented from the third quarter of this year and the whole project is expected to be put into operation in 2023.
LSPC is located in Long Son commune of Ba Ria-Vung Tau province, 100 kilometres from Ho Chi Minh City. This integrated petrochemical complex will have a total olefin production capacity of 1.6 million tonnes per year.
The complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of two million tonnes per year, enabling it to substitute imported polyolefin products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included.
|The breaking ground ceremony in February 2018|
The project will create more than 20,000 jobs during construction, including more than 1,000 skilled labourers, and is expected to contribute around $60 million per year to the annual budget.
SCG began expanding its business in Vietnam in 1992. So far, the group has 23 subsidiaries and affiliates with over 8,300 labourers working in Vietnam.
By Bich Ngoc