Itochu takes aim at-energy industry

Japan’s Itochu Corporation is grabbing a foothold in Vietnam’s petrochemical sector.

The corporation wants invest in the $3.7 billion Long Son petrochemical complex in Ba Ria- Vung

Tau province, a joint venture between Thailand’s Siam Cement Group, PetroVietnam and Vinachem.

The announcement was released ‘at a meeting between Itochu representatives and minister of Planning and Investment Vo Hong Phuc in Hanoi last week.

“Itochu intends to take part in a joint venture to invest in this project. We and a Qatari partner are working to join the joint venture.” said an Itochu’s senior officer.

The name of Qatari partner was not mentioned during the meeting, but late last year Siam Cement Group announced that it signed a framework agreement with Qatar Petroleum International to invest into this project, in which the Thai conglomerate holds a 71 percent stake.

He said Itochu had reached an initial agreement with the existing members of the joint venture, but he did not revealed how much money the corporation would invest into the project.

“The final agreement will be finalised this October. Then, we will submit an application to the Vietnamese government to establish a new joint venture,” he said.

The petrochemical complex is among the largest ones in Vietnam that will produce 1.65 million tonnes of olefin, 1.45 million tonnes of polyolefin, and other products. The complex includes supporting infrastructure such as shipping ports, a power plant, utilities and storage facilities.

According to a Siam Cement Group announcement, Long Son petrochemical complex will have excellent synergy with a wide array of Vietnamese industries such as automotive, consumer goods packaging and aluminium firms.

Under the initial plan, the complex will start production in 2011. However, it has yet to start construction due to clearance site difficulties.

Itochu Corporation has already jointly invested in an $80 million ethanol project with PetroVietnam. Besides that, it is planning to invest in Lach Huyen deep-seaport in northern Hai Phong City and the railway project connecting Noi Bai international airport and Hanoi’s downtown. – VIR

Tags: Itochu, Vietnam energy