CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / Opportunities
SCG plans to fully acquire Long Son Petrochemicals complex
Ngoc Thuy 15:25, 2018/01/26
Thailand’s Siam Cement Group (SCG) could potentially become the sole investor of the US$5.4-billion Long Son Petrochemicals complex (LSP) in Ba Ria-Vung Tau.
SCG currently holds 71% of LSP’s charter capital, while PetroVietnam (PVN) owns the remaining 29%. 
 
Long Son Petrochemical complex is expected to spearhead SCG's expansion in this sector.
Long Son Petrochemical complex is expected to spearhead SCG's expansion in this sector.
Recently, SCG has sent a letter to the Vietnamese government expressing its intention to fully acquire the petrochemicals complex, according to a report released on January 19. SCG is currently negotiating with the government on conditions to revive the long-delayed project, revealed Roongrote Rangsiyopash, CEO of SCG, to local media. 

“No decision has been made,” added Rangsiyopash when asked about the potential purchase of PVN’s 29%, while SCG’s media representative in Vietnam has not verified this deal to Hanoitimes.

LSP is expected to play a key role in the growth of SCG’s petrochemicals business. “SCG aims to expand our business line in this sector, as well as our opportunities in Vietnam,” he said. 

The slow recovery of the Thai economy had a negative impact on SCG’s construction materials business. In 2017, the country’s total demand for cement dropped by 5%. SCG expects revenue from cement will increase by 2-3% this year after new infrastructure projects are kick-started.

In an effort to diversify production, SCG is expanding its cement plants in neighboring countries such as Cambodia, Indonesia, Laos, and Myanmar. SCG also considers investing in overseas packaging industries. 

Earlier this week, SCG has made inquiries about a potential purchase of 68.3% of the stakes at Malaysian packaging company Interpress Printers Sendirian Berhad for US$26.5 million.

SCG’s net profit in 2017 dropped by 2% to US$1.73 billion, while revenue increased slightly to US$14 billion, showing fierce competition in the cement and construction materials business.

SCG’s revenue from cement and construction materials accounted for 39% of the group’s total revenue, while that of petrochemicals was 46%. 

Long Son Petrochemicals complex was licensed in 2008 with an initial investment capital of $3.7 billion and with the participation of three groups: PetroVietnam, Vietnam Chemical Group (Vinachem), and SCG. 

VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI) in 2012.

In April 2017, QPI also decided to withdraw from LSP. At the time, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), SCG acquired a 25% stake from QPI in LSP Limited, the investor of the LSP complex, according to a statement published on SCG’s website. 

Located in southern Ba Ria-Vung Tau province in Vietnam, LSP targets to develop a 1-million-ton ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of 1.6 million tons per year. As per SCG’s plan, the complex is scheduled to start commercial operations in the first half of 2022.
Comments
Other news
16:32, 2024/04/04
Vietnam among top investment destinations for SEA investors
The top three neighboring countries whose companies are eager to expand their operations in Vietnam are Thailand (66%), Malaysia (58%), and Indonesia (55%).
15:21, 2024/03/08
Vietnam looks to support FDI firms as global minimum tax looms
The move is aimed at attracting foreign capital from future investors and protecting existing businesses.
19:45, 2024/03/06
Factors unlocking Vietnam’s potential in FDI attraction: HSBC
The strategy to attract more FDI should begin with understanding and assessing the competitive landscape between Vietnam and other Southeast Asian countries.
15:17, 2024/03/04
Opportunity at hand: Leveraging global minimum tax for FDI attraction
2024 is a pivotal year, opening up new opportunities for Vietnam to attract high-quality foreign investment.
13:36, 2024/02/21
Intel boosts Vietnam’s semiconductor workforce for ambitious goals
Kim Huat Ooi, Vice President of Manufacturing, Supply Chain and Operations and General Manager of Intel Products Vietnam, spoke to The Hanoi Times about Vietnam's semiconductor ambitions and Intel's contribution to making the country a global manufacturing and R&D hub.
12:44, 2024/01/19
Vietnam: Leading destination for sustainable investment
Vietnam promised to balance the interests of the government, the general public, and businesses while sharing risks to ensure the legitimate rights of investors.