Thailand’s Siam Cement Group (SCG) has acquired another 25 percent stake in Long Son Petrochemicals Complex for 36.1 million USD (Photo: twgroup.com.vn )
 
 
Hanoi (VNA) - Thailand’s Siam Cement Group (SCG) has acquired a part of Long Son Petrochemicals (LSP) Complex for 36.1 million USD, reviving its delayed petrochemical complex in Vietnam.

The 36.1 million USD acquisition raises SCG’s stake in LSP from 46 percent to 71 percent, making it the largest shareholder. The remaining 29 percent is held by Vietnam National Oil and Gas group (PetroVietnam).

The corporation had been looking for a new partner for the LSP project in Ba Ria-Vung Tau since 2015 after Qatar Petroleum International (QPI) decided to withdraw. Finally, SCG purchased the entire 25 percent stake from Qatar Petroleum Vietnam Limited (QPIV), a division of QPI.

The transaction was carried out through SCG’s wholly-owned subsidiary Vina SCG Chemicals (VSCG), the company said in a filing.

The project will be financed through a combination of equity and debt, the final decision for which is expected to be made in the first half of 2017.

Located around 100km from HCM City, LSP is the first petrochemical complex in Vietnam. The project’s goal is to develop a 1-million-tonne ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of up to 1.6 million tonnes per year.

SCG is a century-old Thai corporation with interests in cement production, construction materials, chemicals and packaging. Regionally, it has investments in Indonesia, Vietnam and Cambodia. By the end of 2016, SCG had invested more than 800 million USD through a number of projects in Vietnam.-VNA