Long Son Petrochemicals Company Limited (Vietnam)

Being founded in 2008, Long Son Petrochemicals Company Limited has been established to develop, construct and operate Vietnam's first integrated petrochemical complex located in Ba Ria-Vung Tau Province. Mr. Roongrote Rangsiyopash - Chairman and CEO of SCG (The Siam Cement Group, Thailand) said that the project is a world-class complex with an investment capital of up to USD 5.4 billion. This is also one of the Group's largest investment projects in ASEAN. SCG has borrowed over USD 3.2 billion from 6 financial institutions including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Bank, and Export Bank of Thailand. The term of this contract is 14 years. Sumimoto Mitsui Bank is also the financial advisor for the project.The project started construction in the third quarter of 2018 and is expected to go into operation in the first half of 2023. It has a total area of ​​464ha and comprises a world-scale grassroots mixed-feed cracker, downstream polyolefins plants (HDPE, PP, and LLDPE), central utility unit, port, wharves, storage facilities, and other associated facilities.… By design, Long Son Petrochemical Complex Project is capable of producing 1.6 million tons of olefin/year with flexible crushing technology from raw materials such as proban, naphtha... In addition, with integrated crushing technology, the factory can also produce a variety of products such as polyethylene (PE), polypropylene (PP), and vinyl chloride monomer (VCM), HDPE, LDPE... The goal of the project is to start up each item of the complex in 2022 and put the whole complex into operation in early 2023. Up to the first quarter of 2023, LSP, according to SCG, has put into operation trial production of polyolefin resins (PP, HDPE, LLDPE) to supply plastic resins to the Vietnamese market. Sometimes, it exports to Thailand and Singapore.This project comes into operation helping to gradually reduce and replace the import of petrochemical products, providing an important source of fuel for domestic manufacturing industries and creating new investment trends, attracting small and medium enterprises operating in the downstream fields of petrochemicals such as plastics, chemicals, spare parts and equipment, packaging, silk and yarn, electronics, textile and dyeing products... as well as other service industries develop. Mr. Roongrote Rangsiyopash also said that the company is developing two new projects at the same time, including a capacity upgrade for the current project and an expansion for phase 2 of the project (LSP2). The LSP2 project will be deployed in the same area as the current project, taking advantage of the existing infrastructure to expand the factory.