Thai group increases stake in VN’s first petrochemical complex
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.
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
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
You should also see
InfographicADB maintains 2024 economic growth forecast for Vietnam
In its April 2024 Asian Development Outlook (ADO) report, the Asian Development Bank (ADB) has maintained its earlier forecast for Vietnam’s economic growth this year, despite ongoing uncertainties from the external environment. Vietnam’s economy is expected to achieve a growth rate of 6.0% in 2024 and 6.2% in 2025.
See more
Videos
Foreign investment driven towards new breakthrough phase
Vietnam has so far drawn nearly 500 billion USD in registered FDI capital after nearly four decades of opening up its economy, with investment quality improvement considered a key task for a new breakthrough phase ahead.
Business
Quang Ninh attracts additional 115 million USD from Japan investors
The Quang Ninh Economic Zone Authority (QEZA) presented investment certificates to two Japanese projects worth 115 million USD in total at a conference held at Song Khoai Industrial Park (IP) on April 19.
Business
Central bank plans to auction gold bars on April 22
The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Business
Hanoi to host Vietnam Medipharm Expo 2024
The 31st Vietnam International Medical and Pharmaceutical Exhibition (Vietnam Medipharm Expo 2024) is scheduled to take place in Hanoi from May 9 to 12, an official of the Ministry of Health (MoH) told a press conference on April 19.
Business
Japan's Takashimaya plans to expand investment in Vietnam
Takashimaya, a Japanese operator of upscale department stores, plans to open a shopping centre in Hanoi in 2026 that will be the company's first new location abroad in eight years, Japanese newspaper Nikkei reported.
