SCG Chemicals loses $304 mln from Long Son Petrochemicals in Vietnam in 2024

SCG Chemicals (SCGC), an arm of Thailand’s Siam Cement Group (SCG), recorded a loss of THB10,269 million ($303.6 million) from the $5.2 billion Long Son Petrochemicals (LSP) complex in Vietnam in 2024.

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.

Regarding SCG, it is “profitable” at THB14,428 million ($426.52 million) without LSP. Instead, its profit reached THB6,342 million only. Despite the loss at LSP, SCG said it recorded sales of THB49,514 million ($1.45 billion) in Vietnam in 2024, up 11.1% year-on-year,

For 2025, SCGC estimates LSP’s monthly total expenses can reach THB1,200 million ($35.5 million), of which 40% is non-cash, such as depreciation.

SCGC started land preparation for the Long Son Petrochemicals complex in Vietnam’s southern province of Ba Ria-Vung Tau in 2018, started up all utilities in 2022, and conducted a full complex test run in December 2023.

LSP began its commercial operation (COD) in September 2024, with an initial production output of 74,000 tons during the trial phase. At full capacity, the complex’s annual output will include 1.4 million tons of polyethylene and polypropylene.

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

According to Ba Ria-Vung Tau authorities, LSP complex is planning to resume operation from early Q3/2025.