The head of Siam Cement Group (SCG), has said Long Son Petrochemicals, owned by SCG Chemicals, will start commercial production at its petrochemical complex in southern Vietnam in September. SCG’s Roongrote Rangsiyopash said on the sidelines of an industry event that the company is in the process of testing each operating unit at the complex.
SCG owns SCG Chemicals.
According to Rangsiyopash, testing will be completed in July or August, so commercial operations could start around September.
He said the US$5.4 billion plant in Ba Ria Vung Tau province will produce polyethylene, polypropylene and basic chemicals.
Rangsiyopash also said that for the first year, some of the products will be exported to countries in Southeast Asia like Thailand and Indonesia to balance the supply and demand until Vietnam can fully absorb the supply.
Petrochemical demand has been struggling globally recently amid economic headwinds and poor demand in China. Refiners’ profit margins on processing naphtha to make ethylene turned negative this month for the first time since October.
Rangsiyopash said there is no recovery in sight in the second half of the year, adding that 2023 revenue growth will be flat from last year, even with the increase in capacities from the LSP complex startup.
The bulk of the plant’s raw materials, naphtha and propane will be imported from the Middle East. Separately, the company could list 25.2% or 3.85 billion shares in an IPO this year. Rangsiyopash said they had time until October to decide on the IPO plans and it might be shelved depending on market conditions. (NNT)
