LSP's new move after suspending operations of $5 billion petrochemical complex in Vietnam

After a period of commercial operation, the $5 billion petrochemical complex in Ba Ria - Vung Tau has temporarily stopped operations. In the coming time, SCG Group will invest $700 million in a project to upgrade infrastructure and increase the use of Ethane gas as input material.

This afternoon (November 7), Long Son Petrochemical Company Limited (LSP - a member of Thailand's SCG Group) announced a strategic investment project worth 700 million USD to upgrade infrastructure, aiming to increase the use of Ethane gas imported from the United States as input material. The project is expected to be completed by the end of 2027.

According to LSP, this move was made to avoid misunderstandings about the company ceasing business operations, following the announcement of temporarily suspending operations of the $5 billion Long Son petrochemical complex in Ba Ria - Vung Tau last October.

The first petrochemical complex worth over 5 billion USD in Vietnam is in commercial operation.jpg — Long Son Petrochemical Complex has a total investment capital of more than 5 billion USD. Photo: LSP

LSP representative also said that Long Son petrochemical complex officially went into commercial operation on September 30, with initial output reaching 219,000 tons during the 9-month trial period.

However, the petrochemical industry is experiencing a severe downturn with record low profit margins. Meanwhile, LSP's parent company is focusing on optimizing production management of all three plants to adapt to input material costs, market demand and the global economic situation.

Therefore, the LSP complex had to suspend commercial production activities from the end of October to control total production and business costs, with plans to restart when market conditions are more favorable.

Ba Ria - Vung Tau: Long Son Petrochemical Complex will officially operate in November

LSP (part of SCG Group, Thailand) is an important investment project in Ba Ria - Vung Tau province. When the complex is in stable operation, LSP will produce about 1.4 million tons of polyolefin/year.

The first petrochemical complex worth over 5 billion USD in Vietnam enters commercial operation

After many years of construction, the first integrated petrochemical complex in Vietnam invested and built by SCG Group (Thailand) has officially entered commercial operation.