Siam Cement, PetroVietnam to invest $5.6b in Vietnam’s first petrochemical complex

Visual from Siam Cement Group website

Thailand’s construction material conglomerate Siam Cement Group (SCG) has set up a joint venture with Vietnam Oil and Gas Group (PetroVietnam) to build Vietnam’s first petrochemical complex with a total investment of 188 billion baht ($5.6 billion).

The Thai company owns 71 per cent through its wholly-owned subsidiaries Vina SCG Chemicals Co Ltd and Thai Plastic and Chemicals Pcl in the JV, while PetroVietnam holds the remaining 29 per cent.

Roongrote Rangsiyopash, president and CEO of SCG, told local media that it has already made the initial investment of 30 billion baht for purchasing the land. Construction is set to start next year and commence operation in the first half of 2022.

Located 100 kilometres from Ho Chi Minh City, the Long Son Petrochemicals project will develop a one-million-tonne ethylene cracker that can produce up to 1.6 million tonnes of olefins per annum.

The supply will help serve rising domestic demand and reduce Vietnam’s import of petrochemical products, Rangsiyopash said.

Since this project has been postponed for years, the cost has shot up by 20 per cent from its previous estimation of $4.5 billion. About 30 per cent of total investment will be used for the development of a deep sea port and other facilities to support the petrochemical plant.

The company’s filing cited that financing will be through a combination of foreign denominated debt and equity at 60:40.

Rangsiyopash added the project’s internal rate of return is expected to be at 13-14 per cent.

Also read:

Siam Cement to pick 25% more in Vietnam’s Long Son Petrochem for $36.1m

Thailand: Siam Cement ups stake to take over Vietnam’s tile maker Prime Group

Siam Cement Group kicks off ASEAN’s first industrial-focused venture fund

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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