Long Son Petrochemical Complex adds to plant suspension, additional investment of 700 million USD

The investor of the Long Son petrochemical complex announced that it will invest $700 million in a project to import ethane raw materials from the United States, while still upholding its commitments when commercial operations cease.

A view of the Long Son Petrochemical Complex - Photo: DONG HA

On November 7th, Long Son Petrochemical Company Limited (LSP) - the investor of the Long Son Petrochemical Complex - issued a notice about its new investment project, promising to increase competitiveness, reduce input costs, enhance production flexibility, and minimize carbon emissions.

Accordingly, the company will upgrade its infrastructure and increase its use of imported ethane from the United States as a raw material. This project, worth $700 million, is expected to be completed by the end of 2027.

Specifically, LSP's olefin production process is designed to be flexible and compatible with gas feedstocks. A large portion of this investment is focused on processing and storing raw ethane at temperatures as low as -90°C.

Leaders of the Long Son Petrochemical Complex answering questions from Tuoi Tre newspaper - Photo: D.H.

When this project is completed, LSP will be able to utilize ethane for up to two-thirds of its total raw material input, in addition to other raw material sources.

LSP's announcement also stated that SCG Group - Thailand (LSP's parent company) is focusing on optimizing production management across all three factories, including two in Thailand and LSP in Vietnam. The aim is to adapt to input material costs, market demand, and the global economic situation, as well as maximize the company's competitiveness.

Plastic pellets are being introduced to the market during the trial run and short commercial operation phase of the Long Son Petrochemical Complex - Photo: DONG HA

Previously, on September 30th, the complex officially commenced commercial operations, but from mid-October 2024, commercial production had to be temporarily suspended. The reason for the suspension is that the petrochemical industry is currently facing a downturn and low profitability. This stems from the lingering effects of the global COVID-19 pandemic, the significant increase in production capacity in China, and high oil prices due to geopolitical tensions.

Therefore, the Long Son Petrochemical Complex had to temporarily suspend commercial production to control overall production and business costs, with a plan to restart when market conditions are more favorable.

In a statement, LSP "remains committed to its employees, business partners, and its long-term business direction."

Vietnamese workers at the Long Son petrochemical complex - Photo: DONG HA

During the temporary suspension of commercial production, LSP will maintain its facilities and machinery to ensure stable operation and implement cost-saving measures. Notably, the company will focus on investing in training and developing the capabilities of its 1,000 employees.

"We are confident that the company can respond to market challenges and is ready to restart the complex by focusing on optimizing production processes and investing in employee capacity development," said Kulachet Dharachandra, General Manager of LSP.

The Long Son Petrochemical Complex project is located in Long Son commune, Vung Tau city, Ba Ria - Vung Tau province. This project has a total investment of up to 5 billion US dollars.

Source: https://tuoitre.vn/to-hop-hoa-dau-long-son-noi-them-ve-tam-dung-nha-may-dau-tu-bo-sung-700-trieu-do-la-my-20241107185442628.htm