Thai Siam Cement Group (SCG) has become a big investor in Vietnam’s oil refinery after acquiring 25% equity stake in Long Son Petrochemicals Company from Qatar Petroleum.
Earlier, Vina SCG Chemicals (VSCG), a subsidiary of SCG in Vietnam, signed a purchase agreement with QPI Vietnam Limited (QPIV), a subsidiary of Qatar Petroleum, to own QPIV’s 25% equity stake in Long Son Petrochemicals Company, the owner of Long Son Petrochemical Complex.
The US$36.1 million transaction will increase SCG’s holding in Long Son Petrochemicals Company from 46% to 71% while the remaining shares of 29% are owned by state-owned energy firm Vietnam Oil and Gas Group (PetroVietnam).
The first petrochemical complex in Vietnam built at a cost of US$5.4 billion has a capacity of 1.6 million tons of olefin per year. It is equipped with state-of-art technologies and modern equipment to meet environmental protection requirements and to produce high-quality PP and PE plastic products.
It will generate around 15,000-20,000 jobs during the construction process and more than 1,000 jobs after it is put into commercial operation. It will also contribute around US$115 million to the State budget annually within 30 years since it begins operation in 2021.VOV