After a period of commercial operation, the $5 billion Long Son petrochemical complex in Ba Ria - Vung Tau of SCG Group has temporarily stopped operating. What will happen to the workers of this complex?
Due to the global petrochemical industry downturn, Long Son petrochemical complex has temporarily suspended commercial operations for investment, upgrading and will resume operations - Photo: THAI LOC
Speaking to Tuoi Tre Online on the afternoon of November 3, a representative of Long Son Petrochemical Company Limited (LSP) under SCG Group (Thailand) said that although the Long Son Petrochemical Complex has temporarily suspended commercial operations, the factory's employees are not currently affected. The company will take advantage of this time to improve the skills of its staff and prepare for the restart of the complex.
LSP said the company is committed to continuing to develop its people through various training programs, while equipping employees with both professional knowledge and essential soft skills such as leadership.
“During this time, LSP will also take the opportunity to improve operational standards, including environmental protection measures, safety procedures and operational programs, to ensure optimal results when the project is restarted,” the company representative said.
Responding to Tuoi Tre Online earlier, Mr. Kulachet Dharachandra - General Director of Long Son Petrochemical Company Limited - said that this enterprise has directly recruited a high-quality workforce of about 1,000 people, of which 85% are Vietnamese.
In addition, there are about 800 workers working for contractors with long-term cooperation with this complex, mainly people in Ba Ria - Vung Tau.
Many engineers said they still work normal office hours, shifts and are paid normally, just no longer "overtime" like before.
Workers at the complex were also informed to use the temporary suspension of commercial operations to upgrade their team's skills and prepare for the complex's restart.
Workers at the Long Son petrochemical complex are not affected, the company will take advantage of this time to improve the skills of the team and prepare for the restart of the complex - Photo: THAI LOC
A service contractor for the complex said that in the previously signed contract, if the plant does not operate commercially, the lessee will still pay basic services for the contractor to maintain equipment and facilities.
Therefore, even though the complex temporarily suspends commercial operations, the business is not seriously affected.
Long Son Petrochemical Complex located in Long Son Commune (Vung Tau City, Ba Ria - Vung Tau Province) has a total investment of 5 billion USD, has just started commercial operation since September 30, is expected to have a revenue of 1.5 billion USD/year and contribute about 150 million USD/year to the budget.
However, SCG Group said that due to the decrease in global demand, the company's petrochemical industry also decreased profits, with the Long Son factory alone reporting a net loss of about VND 1,560 billion in the third quarter of 2024.
Therefore, SCG will invest in upgrading the Long Son petrochemical complex using ethane gas imported from the US with a total investment of about VND17,500 billion, and will restart the complex when market conditions are more favorable.
Additional investment of 700 million USD to optimize costs and reduce emissions
SCG Group said that in the face of the global petrochemical industry's decline with oversupply and declining demand for petrochemical products, the Long Son petrochemical complex had to temporarily suspend commercial operations and will restart production when the market recovers.
"This is a strategic decision, demonstrating the project's ability to flexibly adapt to changing and challenging market conditions, and is also an opportunity for the Long Son petrochemical complex to prepare to seize opportunities when the market recovers," an SCG representative affirmed.
According to SCG, in the long term, green initiatives and comprehensive green growth strategies open up many business opportunities and advantages for enterprises.
Therefore, the group invested an additional 700 million USD in the project to increase ethane gas feedstock at Long Son Petrochemical Complex to reduce input material costs. SCG said this move will help enhance competitiveness in the global petrochemical industry, as well as contribute to reducing C emissions. O₂ in the production process.
SCG is a leading multi-industry corporation in Southeast Asia, founded in 1913 in Thailand, currently has more than 200 member companies and about 57,000 employees worldwide.
In Vietnam alone, in addition to the petrochemical industry, SCG also operates in the packaging and construction materials sector with 27 member companies and more than 16,000 employees.
SCG's sales revenue in the first 9 months of 2024 in Vietnam reached nearly VND 25,700 billion (equivalent to USD 1.03 billion), up 17% over the same period last year.
Source: https://tuoitre.vn/tam-dung-van-hanh-to-hop-hoa-dau-long-son-5-ti-usd-ca-ngan-lao-dong-se-ra-sao-20241103170758321.htm
Comment (0)