Southern Petrochemical Complex in Ba Ria – Vung Tau Province, southern Vietnam. Photo by Read/Truong Ha
The Thai-invested Long Son Petrochemicals complex in southern Vietnam has suspended operation since mid-October, two weeks after its commercial launch.
Thai conglomerate Siam Cement Group, the project developer, announced in a disclosure that it has shut down the complex in response to challenges in the petrochemical industry.
Global demand for chemical products is slowing and profit margin is narrow, it said, as cited by the Bangkok Post.
Launched on September 30, the $5-billion complex in Ba Ria–Vung Tau province is one of Vietnam’s largest foreign direct investment projects.
SCG has plans to invest an additional $700 million into the facility to incorporate U.S.-imported ethane as fuel, a move aimed at cost reduction.
Long Son, which took five years to construct, is capable of producing 1.35 million tons of olefins and 1.4 million tons of polyolefin annually. These compounds are used to produce a variety of plastic products.
It targets annual revenues of $1.5 billion and creation of 1,000 jobs. Another 800, half of them locals, will be hired by its long-term contractors.
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