SINGAPORE (ICIS)--Samsung Engineering has secured contracts worth Korean won (W) 615.3bn ($548m) to build two polymer plants in Vietnam for Long Son Petrochemicals (LSP).
A 450,000 tonne/year Package B high density polyethylene (HDPE) plant would be constructed for W338.3bn in Vung Tau in south Vietnam, the South Korean engineering firm said in a disclosure to the Korea Exchange on 27 June.
In a separate disclosure, it said that a 400,000 tonne/year Package C polypropylene (PP) plant would be built at the same site for W277bn.
These were lump-sum turnkey contracts over a four-year period.
LSP is Vietnam’s first petrochemical complex and is expected to be operational in 2022.
Located 100 km away from Ho Chi Minh City, the project will include a mixed-feed cracker, which can yield up to 1.6m tonnes/year of olefins depending on the feedstock mix, and is expected to produce some 2.7m tonnes/year of downstream products, including PE and PP.
Thailand’s Siam Cement Group (SCG) recently acquired an additional stake in LSP, making it an indirect owner of 100% of the $5.4bn project.
SCG’s wholly-owned subsidiary Vina SCG Chemicals bought the additional stake in LSP, raising its ownership to 82% stake, while the remaining 18% is held by Thai Plastic and Chemicals, another SCG's subsidiary.
Top image: SCG broke ground at its US$5.4 billion flagship project of Long Sơn Petrochemicals (LSP) in Vietnam in February 2018. (Source: LSP website)
($1 = W1,122)