Long Son complex’s financial SOS

The $4.5 billion Long Son petrochemical complex wants new partners to address its financial difficulties.

The plea was voiced by Siam Cement Group (SCG) chairman Kan Trakulhoon on the sidelines of Thailand Sustainable Development Conference 2011 in Bangkok on September 19. SCG is the Ba Ria-Vung Tau-based petrochemical complex’s largest stakeholder (71 per cent).

Kan said SCG planned to source capital from the business community and is working with some partners, including those from Vietnam such as PetroVietnam, on the issue.

“We need finance and support from the banking sector first. Positive changes may appear early next year,” said Kan.

He confirmed scores of foreign partners wanted to jump into the project.

Long Son petrochemical complex is worth $4.5 billion in total investment capital.

A PetroVietnam executive told VnExpress.net that a 29 per cent stake in the Long Son complex was seized by Vietnamese partners with PetroVietnam holding 18 per cent and Vinachem 11 per cent.

Construction of the 400 hectare complex kicked-off in 2008 in Vung Tau city. Once online, the project will help the country save $1 billion each year on importing raw materials for local plastic manufacturing industry.

The project’s initial capital was set at $3.7 billion, but later scaled up to over $4.5 billion.

SCG currently operates 13 subsidiaries in Vietnam focusing on petrochemical, paper, cement, building materials and distribution fields. The group’s total asset value in Vietnam reportedly exceeds $382.6 million.  -VIR

Tags: Long Son petrochemical complex