Thai industrial conglomerate Siam Cement Group (SCG) has signed an agreement to acquire the 29 per cent stake it does not currently own in Vietnam’s Long Son Petrochemicals (LSP) for over VND2.05 trillion ($90.2 million), according to a stock exchange filing by the Thai firm.
Vina SCG Chemicals, a wholly owned subsidiary of SCG, has signed an agreement with Vietnam Oil and Gas Group (PetroVietnam) to acquire the latter’s 29 per cent stake in LSP. The transaction is expected to be completed by the end of June 2018.
With this, SCG now fully owns the $5.4-billion LSP complex. The project is expected to be commissioned in 2023.
The complex was licensed in 2008 at an initial investment capital of $3.7 billion with participation from PetroVietnam, Vietnam Chemical Group (Vinachem) and SCG. VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI).
In April 2017, QPI also decided to withdraw its capital from LSP. At that time, SCG, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), acquired a 25 per cent stake from QPI in LSP Limited, the investor of the LSP Complex, according to a statement published on SCG’s website.
Located in Southern Ba Ria-Vung Tau province in Vietnam, LSP targets to develop a 1 million tonne ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of up to 1.6 million tonne per year.
SCG has invested in Vietnam since 1992 in many sectors such as cement, construction materials, petrochemicals and packaging. The group now has 23 subsidiaries operating in Vietnam with about 8,300 employees.
Last year, SCG’s total revenue in Vietnam reached over $1.1 billion.