Thailand-based conglomerate SCG Saturday broke ground at its US$5.4 billion flagship project of Long Sơn Petrochemicals (LSP) after 10 years of preparation.
The project, at Long Sơn Commune, Bà Rịa – Vũng Tàu Province, 100km away from HCM City, is the first integrated petrochemical complex in Vietnam with total olefins capacity of 1.6 million tonnes each year. It is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene and other products in excess of 2 million tonnes each year.Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, will also be built.The project is expected to begin commercial operation in early 2023.
Speaking at the groundbreaking ceremony, Vietnam’s Prime Minister Nguyễn Xuân Phúc praised the efforts of related authorities to overcome difficulties for the operation of the project.“The project is a symbol of international collaboration between Vietnam and Thailand. It must protect natural and social environments, preserve local culture and recover forests,”“Related authorities must ensure living standards for those who had to move for the project by providing career training and job recruitment,” he said.“SCG believes that the project will encourage the long-term investment in related industries throughout the value chain as well as improving competitive standard of products that will lessen the need of importing petrochemical products,” President and CEO of SCG Roongrote Rangsiyopash said.The Long Sơn Petrochemical project has an area of about 464 hectares and an additional 194 hectares of waterfront area for a deep sea port.The project will create 20,000 jobs during construction. It is expected to contribute to the national state budget around $60 million annually as well as attract more than 1,000 high-tech workers.“After beginning operation, the project will have a great impact on the development of the petrochemical industry and downstream businesses, such as automobiles, electronics, electrical equipment, packaging and other services of the province,” Nguyễn Văn Trình, chairman of the Bà Rịa – Vũng Tàu People’s Committee, said.SCG, one of Thailand’s best-known conglomerates, was founded in 1913 and has over 200 companies and 57,000 employees. SCG began its business operation in Vietnam in 1992 with a trading business and gradually expanded investment in diversified businesses in the cement-building materials, chemicals and packaging industries. (Source: http://www.nationmultimedia.com/detail/breakingnews/30339633)