Many foreign investors eye SCG's Vietnam project: Kan
Siam Cement Group (SCG)'s petrochemical project in Vietnam is attracting quite a few foreign investors, the group's president and CEO Kan Trakulhoon said recently, though he refused to disclose any details.
SCG currently holds a 71-per-cent stake in the petrochemical complex in Vietnam, while the rest belongs to its local partners, namely the Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Chemical Group (Vinachem).
In 2009, SCG signed a framework agreement with Qatar Petroleum International (QPI) for investment in the project, though the share proportions have yet to be finalised.
Kan said funding for the petrochemical complex project should be finalised by early next year instead of this year, and that a few investors had shown interest in the project.
He said the company and its partners were pursuing corporate financing instead of funding specific to the project. Once the funding is finalised, SCG is optimistic that construction can begin sometime next year.
Earlier this year, SCG had said that it was considering a new funding scheme for the US$4.5-billion (Bt139 billion) petrochemical complex, because it was difficult to find funds due to the high costs.
"Fragile economies in the US and Europe are the main concern for the financial market. So, it is difficult to decide on the funding method just yet," he said.
He added that the Vietnamese government had provided strong support for the petrochemical complex, and SCG was optimistic it would continue once the funding is approved.
