Siam Cement confirms $3.5bn Vietnam petchem jv

20 March 2008 05:53  [Source: ICIS news]

SINGAPORE (ICIS news)--Thai industrial giant Siam Cement (SCC) said on Thursday that it has signed a $3.5-4bn joint venture agreement with state-owned Vietnamese oil major Petrovietnam and Vietnam National Chemical Corporation (Vinachem) to build a petrochemicals complex in Vietnam.

SCC confirmed earlier reports that it would hold a 71% stake in the project through its subsidiary Vina SCG Chemicals, and its consolidated associated company Thai Plastic and Chemicals (TPC) while its Vietnamese joint venture partners would hold the other 29% stake, it said in a statement.

The greenfield petrochemical project on Long Son Island in the southern Vietnamese province of Ba Ria Vung Tau would consist of a naphtha-based cracker with an olefins capacity of 1.65m tonnes/year, a polyolefins unit of 1.45m tonnes/year, a chlor-alkali unit of 280,000 tonnes/year, and a PVC-related capacity of 330,000 tonnes/year of ethylene dichloride (EDC), and 400,000 tonnes/year of vinyl chloride monomer (VCM).

The project is awaiting the approval of the SCC board of directors and cost elements including supporting infrastructures such as port and storage facilities would play a key part in the board’s final decision, it said.

The complex, to be located adjacent to Vietnam’s third oil refinery for operational synergy, will start up in two separate phases, with part of the PVC-related unit scheduled to start up in 2011 while the remaining PVC unit, naphtha-based cracker and related downstream products would start commercial operations in 2013, it added.

Details of which PVC unit would commence in 2011 were not available, an SCC spokesperson said.

TPC is an integrated PVC manufacturer with the core business of producing and selling PVC resin. Vina SCG was established in 2007 as a holding company for SCG’s petrochemical investments in Vietnam.

By: Arujnee J Ram
+65 6780 4359

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