Thailand’s conglomerate SCG to restart $5bn Long Son petrochemical complex this month

According to SCG, the decision comes as falling crude oil prices have improved operating efficiency.

The group stated that the plan reflects its proactive approach to maintaining long-term operations and ensuring readiness amid market challenges.

Additionally, the project to enhance the competitiveness of the complex by incorporating ethane as a feedstock is progressing on schedule and is expected to be completed by 2027.

At the end of 2024, SCG announced the temporary suspension of commercial operations at the Long Son Petrochemical Complex due to market conditions, with plans to resume production once the market has recovered.

The complex is also set to receive a $700 million investment to upgrade its facilities and enable the use of more cost-effective raw materials.

The Long Son Petrochemical Complex began commercial operations on September 30, 2024, after a trial phase that produced 74,000 tons of plastic pellets.

However, SCG later suspended operations to manage overall business costs amid a petrochemical industry downturn caused by oversupply and weakened global demand.

The complex reported a net loss of VND1.56 trillion ($62.9 million) in the third quarter of 2024, excluding interest rate swaps.

SCG, a leading Southeast Asian conglomerate founded in 1913 in Thailand, operates more than 200 subsidiary companies and employs approximately 57,000 people worldwide.

In Vietnam, besides petrochemicals, SCG is active in the packaging and building materials sectors, with 28 subsidiary companies and over 16,000 employees.

SCG reported sales revenue in Vietnam of nearly VND16.6 trillion ($634 million) in the first half of this year, inching down one percent compared to the same period last year.

The group noted that this slight decline indicates relatively stable business performance despite market volatility.