$5.4 Billion Petrochemical Complex Slated For August Restart
The $5.4 billion Long Son Petrochemicals Complex, which is now part of the newly merged Ho Chi Minh City metropolitan area, is expected to resume full operations this August. This restart follows a period of temporary suspension that was initiated due to global market volatility. The news was confirmed by representatives from the project’s main investors, Thailand’s Siam Cement Group (SCG) and Long Son Petrochemicals Company Limited (LSP), during a working session with Vo Van Minh, the Chairman of the municipal People’s Council. As Vietnam’s first integrated petrochemical facility, the complex is a massive industrial asset. It includes a substantial olefins plant with a capacity of 1.35 million tons per year and three polyolefin plants with a combined capacity of 1.4 million tons per year. Its infrastructure also features a specialized port system and modern industrial utilities, making its full operation a significant development for the region’s economy.
Strategic Upgrades and the City’s Commitment to Support
Despite the recent temporary operational halt, the company has continued to maintain its complex at a high standard and has focused on workforce training. Looking to the future, LSP is now finalizing the procedures for a strategic additional investment of $500 million to upgrade the facility. This significant investment will enable the complex to use ethane as a primary feedstock, a move that is expected to substantially enhance its long-term competitiveness in the market. In response to this commitment, Chairman Vo Van Minh expressed the city’s high regard for large-scale, strategic projects like the Long Son Petrochemicals Complex. He praised the company’s efforts to overcome challenges and emphasized that the city is dedicated to creating a favorable and transparent investment environment to support stable and long-term development. Minh also directed relevant departments to assist the firm in navigating any remaining administrative obstacles.
Financial Challenges and Long-Term Outlook
The temporary suspension was a direct result of financial challenges stemming from global market conditions. In October 2024, SCG cited the need to “manage overall business costs” as the primary reason for the temporary operational halt. A performance review from SCG Chemicals (SCGC), an arm of SCG, revealed a significant financial impact from the complex. SCGC recorded a loss of THB10,269 million ($303.6 million) from the facility last year, with expenses mainly attributed to depreciation and interests. This contributed to SCGC posting a net loss of THB7,990 million ($236.2 million) in 2024, a stark contrast to its THB589 million profit in 2023. Despite these short-term financial setbacks, the company’s decision to restart operations and invest an additional $500 million signals strong confidence in the long-term viability and strategic importance of the complex.
