SCG-backed $5.4 bln petrochemical complex in southern Vietnam set to restart operations in August

The $5.4 billion Long Son Petrochemicals Complex, located in Long Son commune, Ho Chi Minh City, is expected to resume full operations this August after a period of temporary suspension due to market fluctuations.

The information was revealed by representatives of project investors - Thailand’s Siam Cement Group (SCG) and Long Son Petrochemicals Company Limited (LSP) - at a working session with Vo Van Minh, deputy Party chief of HCMC and Chairman of the municipal People's Council on Friday.

Ba Ria-Vung Tau province, home to the complex, is now part of the new HCMC, after the recent merger of HCMC, Ba Ria-Vung Tau, and Binh Duong province.

At the meeting, Kulachet Dharachandra, country director of SCG Vietnam and CEO of LSP, stated that the Long Son Petrochemicals Complex is Vietnam’s first integrated petrochemical facility.

It includes an olefins plant with a capacity of 1.35 million tons per year, three polyolefin plants (HDPE, LLDPE, and PP) with a combined capacity of 1.4 million tons per year, a specialized port system, storage tanks, and other modern industrial utilities.

Although the facility was completed at the end of 2024, it remains temporarily non-operational due to global market volatility, he said, noting the company continues to maintain its infrastructure at high standards and focuses on workforce training.

According to Dharachandra, LSP is finalizing procedures to invest an additional $500 million to upgrade the complex, enabling the use of ethane feedstock and enhancing its long-term competitiveness.

In response, Minh praised the company's efforts to overcome challenges and maintain its workforce. He congratulated it on the upcoming restart of the complex’s operations after a prolonged suspension.

He emphasized that HCMC highly values large-scale, strategic projects like the Long Son Petrochemicals Complex, not only for their investment scale but also for their technological significance, job creation, and ripple effects across various industries.

The city is committed to supporting businesses by creating favorable, transparent investment conditions to promote stable and long-term development, he stressed.

Minh also directed relevant departments and local authorities to continue facilitating administrative procedures for LSP and assist the firm in removing any remaining obstacles.

In October 2024, SCG said the LSP complex “temporarily halted operations to manage overall business costs, with plans to reassess operations when conditions are more favorable.”

SCG Chemicals (SCGC), an arm of SCG, recorded a loss of THB10,269 million ($303.6 million) from the $5.2 billion Long Son complex in Vietnam last year.

In its 2024 performance review, SCG said LSP expenses are mainly depreciation and interests. As a result, SCGC posted a loss of THB7,990 million ($236.2 million) in 2024 (before elimination of intersegment transactions), versus a profit of THB589 million in 2023.