Long Son Petrochemical Complex temporarily halts commercial operation
VOV.VN - Thailand’s Siam Cement Public Company Limited (SCG) has announced a temporary halt to the commercial operation of its Long Son Petrochemical Complex (LSP) in Vietnam’s Ba Ria-Vung Tau province for additional investment.
Announcing the results of the conglomerate’s operation in September and the past three quarters, SCG Chairman and CEO Thammasak Sethaudom stated that the LSP complex has been temporarily suspended to control operating costs, and the complex will resume its operation once favourable conditions are met.
SCG is enhancing operational flexibility in petrochemical production in Vietnam through additional investment to implement an ethane feedstock enhancement project, which will help reduce input material costs, said the CEO.
This is SCG’s proactive move to respond and adjust its strategy appropriately amid the global economic volatility, escalating conflicts, the downturn in the petrochemical industry, and fluctuations in the Thai baht exchange rate.
This decision is part of a program to control input costs and product demand in the global economic context to maximize competitiveness, targeting the LSP plant in Vietnam and two other plants in Thailand, said the CEO.
He also revealed that the conglomerate would invest an additional US$700 million into this petrochemical complex to expand the project to be able to use ethane as a feedstock.
The Long Son Petrochemical Complex has just commenced commercial operations on September 30. It is the first integrated petrochemical complex in Vietnam, with an investment of US$5.4 billion, making it the largest FDI project in Ba Ria - Vung Tau province and one of the largest in Vietnam.
