Published on July 15, 2017

Siam Cement Group of Thailand which is wholly owned subsidiary, Vina SCG Chemicals has made the final investment decision to proceed with the construction of its multibillion dollar petrochemical project in Vietnam. SCG said in a regulatory filing today that Long Son Petrochemicals Co. (LSP), in which SCG has an indirect stake of 71%—53% through Vina SCG Chemicals and 18% through Thai Plastic and Chemicals—with PetroVietnam holding 29%. LSP is located 100 kilometer from Ho Chi Minh City, the main market and economic heartland of Vietnam  The construction is likely to take about four and a half years, with commercial operation expected by the first half of 2022, more than three years later than originally planned. The total project cost has escalated from $4.5 billion to approximately $5.4 billion. It will be financed through a combination of foreign denominated debt (60%) and equity (40%).