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SCG breaks ground at Long Son Petrochemicals project

Released at: 09:35, 26/02/2018

SCG breaks ground at Long Son Petrochemicals project

Photo: SCG

Official construction of Ba Ria Vung Tau project now underway, with completion expected by 2020.

by Hong Nhung

The Siam Cement Group (SCG), Thailand’s largest cement maker, held a breaking ground ceremony on February 24 for its flagship project, Long Son Petrochemicals (LSP), in southern Ba Ria Vung Tau province, attended by Prime Minister Nguyen Xuan Phuc, Ambassador of Thailand to Vietnam, H.E. Manopchai Vongphakdi, representatives from PetroVietnam, and local authorities.

The project will advance local industry and provide better living conditions for people by creating competitiveness in the petrochemicals value chain. Completion is expected by 2020.

Long Son Petrochemicals is located at the Long Son Oil and Gas Industrial Zone, covering an area of 464 ha of land with 194 ha of water surface for seaports. The total project cost of nearly $5.4 billion will have a total olefins capacity of up to 1.6 million tons per year and is designed to produce various petrochemical products, including essential plastics such as polyethylene, polypropylene, and other products, with capacity in excess of 2 million tons annually, to substitute imports of polyolefin products.

Non-petrochemical support infrastructure such as a deep-sea ports and other facilities are included in the project. Operations will strictly follow safety and environmental standards and place importance on the community and the environment within SCG’s vision of becoming the region’s sustainable business leader.

“Long Son Petrochemicals plays a vital role in the government’s plan to develop the petrochemicals industry to meet domestic demand and for export,” Prime Minister Phuc told the ceremony.

“The project has been on the drawing board for a long time, and now on behalf of the Vietnamese Government I express my appreciation of SCG, Long Son Petrochemicals and Petro Vietnam’s determination to proceed. The government commits to facilitating the project, which is important not only for the national economy but also for the strategic relations between Vietnam and Thailand.”

“Vietnam’s economy is on an impressive growth path and LSP is expected to contribute additional strength to this momentum,” said Mr. Roongrote Rangsiyopash, President and CEO of SCG. “We believe that the project will encourage long-term investment in related industries throughout the value chain as well as improve product competitiveness, which will lessen the need for imports.”

“SCG also believes that the project will support the growth of downstream businesses in Vietnam and play a vital role in supporting long-term economic growth and improving quality of life in Vietnam and across the region. We also pledge that all business practices will strictly follow international safety and environmental standards to ensure a sustainable co-existence with local communities. SCG recently planned to launch two new projects in Ba Ria Vung Tau: a reforestation project and student scholarships.”

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