Vietnam venture delayed

Siam Cement Group says its $4-billion petrochemical joint venture in Vietnam is facing a further delay because of the country’s general election scheduled for March.

Siam Cement Group says its $4-billion petrochemical joint venture in Vietnam is facing a further delay because of the country’s general election scheduled for March.

Thai Plastic and Chemicals Plc (TPC), the SCG affiliate that is co-investing in the complex, said the investment privileges the Hanoi government would grant the project remained undetermined.

TPC, a manufacturer of polyvinyl chloride polymer, is investing in the complex with a Japanese contractor, Vietnamese partners, and Qatar Petroleum International.

The developers have proposed waivers of import tax on raw materials as well as an eight-year corporate income tax holiday, similar to the privileges offered by Thailand’s Board of Investment.

“Now, they have agreed to let the new government decide on incentives to be granted to our project,” said TPC managing director Kanet Khaochan.

Project financing also has to await a final decision on investment privileges.

Mr Kanet also said that TPC’s suspended vinyl chloride monomer (VCM) project in Map Ta Phut was expected to receive an operating licence by the middle of next year. Once licensed, the 90,000- tonne expansion project would be ready to operate within two months.

Because of baht appreciation, Mr Kanet said TPC expected its net profit this year would be the same or lower the 1.8 billion baht posted in 2009.

TPC shares closed yesterday on the SET at 23.10 baht, down 30 satang, in trade worth 131.3 million baht.

Tags: Siam Cement Group