SCG set to break LSP ground in Vietnam

SCG Chemical’s subsidiary TPC Vina Plastic & Chemical Corporation expects to begin construction of its world-class Long Son refinery petrochemicals complex in Vietnam by the first quarter of 2019.

The petrochemical complex will be one of Siam Cement Group’s largest projects.

SCG has US$5.4 billion (173 billion baht) worth of investments in Vietnam, and is already the largest industrial conglomerate in Asean, as well as Thailand’s largest cement maker.

Pichai Limprapaipong, general director of TPC Vina Plastic & Chemical, said the company has already prepared the land where the plant will be built.

Construction, to begin in early 2019, is expected to be complete in 2023, with operations to start later that year.

“The new petrochemical complex is the largest investment project in Vietnam and Asean. This plant will produce 1.6 million olefin petrochemical products a year. Olefins are key ingredients to produce highdemand plastics like HDPE, LLDPE and PP, for which demand in Vietnam has been growing at an average of 2.3 million tonnes [annually],” he said.

The Vietnamese market for PVC plastic is growing 9% per year, with most of this product being imported from abroad. The company expects the petrochemical plant to supply the domestic and export markets.

Up to 70% of raw materials for the complex will be gas feedstock, which will make production costs lower than at other petrochemicals plants in the region.

SCG increased its stake in Long Son Petrochemicals Co’s (LSP) from 71% to 100%.

SCG recently announced the project will be funded with a 60:40 debt-to-equity ratio. The company plans to make its capital investment this quarter.

LSP is located 100 kilometres away from Ho Chi Minh City in Ba Ria-Vung Tau.

The company said it is committed to implementing strict safety standards and environmentally friendly policies to ensure peaceful coexistence with the community and Vietnam.

Deputy Industry Minister Somchai Harnhiran said the government is promoting Thai investment in Vietnam and other high-potential countries — those where GDP growth of 7-9% per year.

“SCG has been investing in Vietnam for over a decade. With more than 600 million potential customers, Asean is an important market for Thai investors,” he said.

Thailand is the ninth-largest investor in Vietnam. The top three are South Korea, Japan and China.