SIAM Cement Group (SCG), Thailand’s largest industrial conglomerate, said on Monday (Nov 4) it has suspended commercial operation at its US$5.4 billion Long Son Petrochemicals (LSP) complex in Vietnam after only one month due to “the chemicals’ low margin”.
The chemicals industry has been grappling with high inventory and destocking for the past few quarters, putting pressure on several firms.
“The resumption will depend on global dynamic demand,” SCG said in a statement to Reuters.
SCG did not give a clear timeframe for the suspension but expected the chemicals industry would remained challenging well into the fiscal year 2025.
LSP, which commenced commercial operations in Vietnam’s southern province of Ba Ria-Vung Tau on Sep 30, is the first integrated petrochemical complex in Vietnam and produces polyethylene, polypropylene and basic chemicals.
In an interview with Reuters last year, SCG representatives said the complex’s capacity would reach 1.3 million to 1.5 million tonnes. Total demand for Vietnam was about 3.3 million tonnes of both polyethylene and polypropylene combined, it said at the time.
Last week, SCG also announced another US$700 million investment in the Vietnamese complex for storage of ethane feedstock. REUTERS
