Long Son Petrochemical Co., Ltd. (LSP - a subsidiary of Thailand's SCG Group), on November 7, revealed its strategic $700 million investment to upgrade infrastructure and enhance the use of Ethane imported from the U.S. as input material. The project is expected to be completed by the end of 2027.

LSP’s announcement comes amid concerns that its recent shutdown of the $5 billion Long Son petrochemical complex in Ba Ria - Vung Tau, announced last month, could be misunderstood as a complete cessation of business.

An LSP representative clarified that the Long Son petrochemical complex officially commenced commercial operations on September 30, with an initial production output of 219,000 tons during a nine-month trial period.

However, the petrochemical industry is facing a significant downturn, marked by record-low profit margins. LSP’s parent company is currently focusing on optimizing the management of its three plants to better align with input costs, market demand, and global economic conditions.

As a result, the Long Son complex had to halt commercial production in mid-October to control overall production costs. Operations are set to resume once market conditions become more favorable.

Quang Hung