Ba Ria-Vung Tau (VNA) – Long Son Petrochemicals (LSP)’s integrated petrochemical complex, the first of its kind in Vietnam, was put in commercial operation on September 30.
A subsidiary of the SCG Chemicals (SCGC) and a member of the Thai SCG Group, it has a total investment capital of more than 5 billion USD.
The complex will turn out various petrochemical products, including essential plastic resins such as polyethylene (PE) and polypropylene (PP), to serve both domestic and international customers.
Plastic resins from the complex will help reduce imported polyolefin products and enhance competitiveness for downstream businesses along the value chain. Also, they are building blocks for various industries including packaging, agriculture, electrical appliances, and automotive.
Kulachet Dharachandra, General Director of LSP, said he believes that the commencement of the LSP will bring growth to long-term economic and enhance competitive advantages to the petrochemical and plastic industry in Vietnam.
However, in response to the continued global petrochemical industry downturn and volatile crude oil prices that contribute to high raw material costs, the LSP will optimise its operation mode and accelerate operational excellence, he said.
To enhance competitiveness, it plans to increase operational flexibility by expanding the range of raw materials used in production. This strategy will allow for better cost management in line with market conditions and help mitigate the impact of raw material price fluctuations.
The company plans to increase the proportion of imported ethane as a raw material, alongside the current use of naphtha and propane. The increased use of imported ethane will contribute to reducing carbon dioxide emissions.
The LSP is a flagship investment for of SCGC and SCG in the region. Located in Long Son, Ba Ria – Vung Tau province, the complex has a world-scale mix feed cracker, world-class technology polyolefin plants, a specialised tank terminal, and a central utilities plant, along with other supporting facilities fully equipped with advanced technology to ensure safety and be environmentally friendly.
It is committed to conducting its business in line with sustainable development, focusing environmental, social, and governance standards./.
