On March 19, 2008, SCG—through its VSCG Chem subsidiary—entered into a joint venture agreement with PetroVietnam, Vinachem, and Thai Plastic and Chemicals Public Company Limited (TPC) to build Vietnam's first world-scale petrochemicals complex. SCG expects to own a 71% stake in the venture, with the partners holding the remaining 29%.
The new petrochemicals complex, which is expected to cost $3.5-4 billion, will be located on Long Son Island in Vietnam's southern province of Ba Ria Vung Tau. It will be located near a $10 billion oil refinery also planned for the area.
The facility will comprise a naphtha-based cracker with an olefins capacity of 1.65 million tons, a polyolefins plant with a capacity of 1.45 million tons, a 280,000-ton-capacity chlor-alkali unit, and a PVC plant with production capacities of 330,000 tons of EDC and 400,000 tons of VCM. The complex will also include infrastructure such as port and storage facilities as well as utilities. Products from the facility will include the following products for the Vietnamese market: HDPE, LDPE, PE, PP, and PVC.
According to SCG, the PVC-related will start up in two phases. The initial start-up is slated for 2011. The second phase will begin commercial operation in 2013; the remaining PVC-related capacity will begin at that time, along with the naphtha-based cracker and production of related downstream products.