SCG Chemicals, the petrochemical arm of Siam Cement Group, expects to become the largest petrochemical producer in Asean, thanks to a significant increase in output, especially from the Long Son Petrochemicals (LSP) complex project in Vietnam.
The bright prospects have been highlighted by SCG Chemicals as the company applies for a listing on the Stock Exchange of Thailand.
"LSP is scheduled to operate within the first half of 2023. Its construction is more than 90% complete," said Tanawong Areeratchakul, president of SCG Chemicals.
The company is running petrochemical production facilities in Thailand, Vietnam and Indonesia, with a combined capacity of 6.9 million tonnes. Once LSP starts commercial operations, the capacity will increase to 9.8 million tonnes, the highest in Asean.
SCG Chemicals is considering what types of petrochemical products it will emphasise. The company earlier said that LSP has the potential to produce 1.6 million tonnes of olefins a year.
Olefins are a feedstock for making various types of plastics, including HDPE, LLDPE and PP. The three products are currently in high demand in Vietnam.
SCG Chemicals plans to allocate a budget worth 50 billion baht for investment projects, including LSP, in 2022.
Over the past 2-3 years, the company has spent between 160-170 billion baht to support the development of LSP.
According to the company, the total investment value of LSP is US$5.4 billion, or around 173 billion baht, the highest in the Vietnamese petrochemical industry.
SCG Chemicals will also continue its business expansion in Thailand and Indonesia.
In Thailand, the company aims to focus more on green products, notably green polymers, with a production capacity target of 1 million tonnes by 2030. It will also invest in the development of high value-added products.
In Indonesia, SCG Chemicals plans to expand its petrochemical business through PT Chandra Asri Petrochemical Tbk (CAP), an integrated petrochemical complex operator.
SCG Chemicals owns a 30.5% share in CAP.
"Asean is a large potential market for petrochemical products," said Mr Tanawong.
"The Vietnamese and Indonesian economies grew more than 5-6% a year over the past 10 years. Their consumption of polymers stands at 26 kilogrammes per head. This is an opportunity for SCG Chemicals."
