Date: 6 Aug 2018
SCG Moves Vietnam’s First Fully Integrated Petrochemical Complex Forward,
Signs Loan Agreements worth over $3.2 billion with 6 Leading Financial Institutions; Commercial Operations Expected in 2023
SCG pushed forward Vietnam’s first fully integrated Petrochemical Complex project, Long Son Petrochemicals Company Limited (LSP) by recently signing loan agreements worth over $3.2 billion (approximately 110,000 million baht) with 6 leading financial institutions. The project will begin construction in Q3/2018 and is expected to start commercial operations in the first half of 2023 to meet Vietnam’s soaring demand which is as high as 2.3 million tons per year, and such demand is projected to expand continuously thanks to strong Vietnam’s economic growth.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed, “Long Son Petrochemicals project or LSP is a World-Scale Petrochemical Complex with the investment of approximately $5.4 billion or 180,000 MB. It is currently SCG’s flagship investment. This venture will increase competitive advantages of SCG’s Chemicals Business in Southeast Asia. Furthermore, the project is equipped with world-class advanced technologies which allow for high flexibility to utilize raw materials resulting in increased competitive advantage. The project also leverages digital technologies to create innovations for better products, services, and solutions for customers.”
The loan agreements are made in U.S. Dollar and are signed with 6 leading financial institutions: Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand. The total credit facilities is worth over $3.2 billion or around 110,000 MB with a tenor of approximately 14 years. Sumitomo Mitsui Banking Corporation is the project's financial advisor.
LSP is located in Ba Ria – Vung Tau province which is 100 kilometers from Ho Chi Minh City. Its olefins production capacity is 1.6 million tons per year for manufacturing High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE), and Polypropylene (PP). The project has been maintained and operated with strict procedures to achieve world-class safety standards and environmentally friendly practices to sustain activities and support a peaceful coexistence with Vietnam’s communities and society.