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SCG increases Stakes in Vietnam’s Delayed Petchem Complex

Posted on : 26 May, 2017

 

Thailand’s Siam Cement Group (SCG) – that already has 46 percent stakes in Vietnam’s Long Sơn Petrochemicals (LSP) Complex will now increase it to 71 percent, making it the largest shareholder. Vietnam Oil and Gas group PetroVietnam (PVN) will own the remaining 29 per cent.

 

SCG will acquire part of the LSP complex at an investment of US$36.1 million to help revive the delayed petchem project. LSP is located around 100km from Ho Chi Minh City and is Vietnam’s first petrochemical complex. The complex aims to develop a 1-million-tonne ethylene cracker capable of using both gas and naphtha feedstock – with an olefin capacity of up to 1.6 million tonnes per annum.

 

To be financed through a combination of equity and debt, the final decision is to be taken in H1 2017. The acquisition is conducted via SCG’s wholly-owned subsidiary Vina SCG Chemicals (VSCG).

 

SCG that has stakes in a variety of industries such as cement, construction materials, chemicals and packaging, has several investments in Indonesia, Việtnam and Cambodia. By the end of last year, SCG’s investments in Vietnam stood at over $800 million.

 

More on Asian petrochemical markets will be discussed at 23^rd Asia Petrochemical Summit (APS) on 12 – 13 September, 2017 in Singapore.

 

Contact Ms. Huiyan at huiyan@cmtsp.com.sg or tel +65 6346 9113 for more details.

 

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