SCG signs $3.2b loans in Thailand to fund project in Vietnam
SCG has signed loan agreements worth over US$3.2 billion with six banks in its home country, Thailand, to fund construction of Viet Nam's first fully integrated petrochemical complex, Long Son Petrochemicals Company Limited (LSP).
Construction will begin in the third quarter of this year and the complex's commercial operations are expected to start in the first half of 2023 to meet Viet Nam's soaring demand, now at 2.3 million tonnes a year and projected to expand consistently thanks to the country's strong economic growth.
Roongrote Rangsiyopash, president and CEO of SCG, said: "Long Son Petrochemicals is a world-scale petrochemical complex with an investment of $5.4 billion. It is SCG's flagship investment.
"This venture will improve the competitive advantages of SCG's chemicals business in Southeast Asia.
"Furthermore, the project is equipped with world-class technologies which allow for high flexibility to utilise raw materials resulting in increased competitive advantage."
The US dollar loan deals are with Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and the Export-Import Bank of Thailand.
The credit tenor is 14 years.
Sumitomo Mitsui Banking Corporation is the project's financial advisor.
LSP will come up in the southern province of Ba Ria – Vung Tau 100 kilometers from HCM City. It will have the capacity to produce 1.6 million tonnes of olefins a year for manufacturing high density polyethylene, linear low density polyethylene and polypropylene.
SCG, one of the leading conglomerates in the region, has three core businesses: cement-building materials, petrochemicals, and packaging.