VSCG Chem to build biggest petrochemical complex in Vietnam

Vina SCG Chemical Co. Ltd. (VSCG Chem) which owns 14 companies in Vietnam with more than US$330 million in assets said it plans to build the biggest independent petrochemical complex in the country. The US$4.5 billion Long Son petrochemical complex will be built in the southern province of Ba Ria-Vung Tau soon. The Dau Tu newspaper reported that the complex will be built next to the Long Son oil refinery on the 400-hectare area in the PetroVietnam Long Son IP. The complex will be the only supplier of high-density polyethylene (HPDE) and low-density polyethylene (LDPE) in Vietnam. VSCG Chem said that the center of the complex will be a naphtha mill which will have an annual capacity of 1.4 million tons of olefin. The naphtha mill will also be able to produce 1.45 million tons of polyethylene (PE) and polypropylene (PP); 730,000 tons of chemical materials which will be used to produce polyvinyl clorua; as well as 840,000 tons of other important chemical materials for the oil refinery and petrochemical industry. VSCG Chem said it plans to invest some THB2 billion (US$65 million) for research and development. The company, which is the largest producer of chemicals in Thailand, said it is still in negotiations with Thai and foreign financial institutions regarding partnership possibilities for the complex. Together with Thai Plastic and Chemicals Public Limited (TPC), VSCG will have a 71% stake in the complex. State-owned Vietnam Oil and Gas Group (PetroVietnam) will own 18% and state-owned Vietnam National Chemical Corp. (Vinachem) will have an 11% stake in the complex. (February 3, 2012)