The investor of Long Son Petrochemical Complex said it will invest 700 million USD in a project to import ethane raw materials from the US, while still maintaining its commitments when ceasing commercial operations.
A corner of Long Son Petrochemical Complex - Photo: DONG HA
On November 7, Long Son Petrochemical Company Limited (LSP) - the investor of Long Son Petrochemical Complex - announced a new investment project with the promise of increasing competitiveness, reducing input costs, while improving production flexibility and minimizing carbon emissions.
Accordingly, the company will upgrade its infrastructure and increase the use of ethane gas imported from the US as input material. This project is worth 700 million USD, expected to be completed by the end of 2027.
Specifically, LSP’s olefins production process is designed to be flexible to accommodate gas feedstocks. Much of this investment is focused on processing and storing feedstock ethane at temperatures as low as -90 degrees Celsius.
Leader of Long Son Petrochemical Complex in response to a question 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 feedstock, in addition to other feedstocks.
LSP's announcement also said that SCG Group - Thailand (owner of LSP) is focusing on optimizing production management of all three factories, including two in Thailand and LSP in Vietnam. The aim is to adapt to input material prices, market demand and the global economic situation, as well as maximize the company's competitiveness.
Plastic pellets are introduced to the market during the short trial and commercial operation phase of Long Son Petrochemical Complex - Photo: DONG HA
Previously, on September 30, the complex officially began commercial operations, but from mid-October 2024, it had to temporarily suspend commercial production. The reason for the temporary suspension of commercial operations is that the petrochemical industry is currently facing a recession and low profits. This reason stems from the lingering effects of the global COVID-19 pandemic, a significant increase in production capacity in China, and high oil prices due to geopolitical tensions.
Therefore, Long Son Petrochemical Complex had to temporarily suspend commercial production activities to control total production and business costs, with plans to restart when market conditions are more favorable.
In a statement, LSP "remains committed to its employees, business partners and long-term business direction."
Vietnamese workers at Long Son Petrochemical Complex - Photo: DONG HA
During the suspension of commercial production, LSP will maintain its facilities and machinery in good working order and stabilise them, as well as implement cost savings. Notably, the company will focus on investing in training and capacity development for its 1,000 employees.
“We are confident that the company can respond to the market challenges and prepare for the restart of the complex by focusing on optimizing production processes and investing in employee capacity development,” said Kulachet Dharachandra, CEO 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 USD.
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
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