With the acquisition of 25% shares from Qatar Petroleum at Long Son Petrochemical Refinery Complex project, SCG Group (Thailand) continues to strengthen its position as a major investor in Viet Nam petrochemical sector.
Previously, Vina SCG Chemicals (VSCG), a wholly-owned subsidiary of SCG in Vietnam, has signed contract to acquire shares of QPI Vietnam Limited (QPIV), a subsidiary of Qatar Petroleum to receive all 25% shares in Long Son Petrochemical Co., Ltd – the investor of Long Son petrochemical complex, according to a press release posted on SCG’s website.
This 36.1 million USD deal (approximately 1.100 million Thai bath), which raised SCG’s direct and indirect shares in Long Son Petrochemical Co., Ltd from 46% to 71%. Meanwhile, the remaining 29% of the joint venture to develop this project is held by PetroVietnam (PVN).
This project is a major oil and gas project, the first petrochemical complex in Vietnam with production capacity of up to 1.6 million tons of olefins per year, total investment estimated at 5.4 billion USD, applying modern and advanced technologies and techniques, operating safely and meeting the requirements of environmental protection, ensuring high quality petrochemical products such as PP, PE…
The project will create about 15,000 – 20,000 jobs during construction and more than 1,000 jobs when go into commercial operations.
Moreover, the project is estimated to contribute to Ba Ria – Vung Tau and the national budget 115 million USD per year (about 2.5 trillion VND per year) during 30 years since its inception.
The successful negotiation and signing of documents and transfer of funds among partners are important milestone in the project implementation, ensuring that the project is put into operation by 2021.
The Siam Cement Group (SCG) is a leading corporation in the ASEAN region with many efforts to establish competitiveness in the global market. SCG has entered the Vietnam market since 1992.
SCG has also invested heavily in Vietnam in such core business lines as: construction materials, petrochemicals and packaging. In addition to direct capital inflows, in recent years, SCG has also expanded its investment in Vietnam through mergers and acquisitions (M&A).
SCG’s companies in Vietnam are mainly operating in the fields of cement – construction materials, chemicals and packaging. By the end of 2016, total assets of SCG in Vietnam are about 943 million USD.
ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. Our services are as following:
We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows. We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.
We could be reached at email: email@example.com or tel: +848 3520 2779 . To learn more about us, please visit www.antconsult.vn