The Siam Cement Group (SCG) has entered into a joint venture deal with its Vietnamese and Qatari partners to invest in Vietnam's first petrochemical complex.
The complex, expected to be worth $4.5bn, will be built on Long Son Island at Ba Ria-Vung Tau province in southern Vietnam.
The move follows the signing of the 'Framework Agreement', which was announced to the Stock Exchange of Thailand in November 2009, and the 'Investment Agreement' in January 2012.
SCG, a subsidiary of Siam Cement Public Company (SCC), said that full investment details will be projected in 2013.
The new plant, with an expected production capacity of 1.4 tonnes per annum (tpa), is likely to begin its commercial operation after four to five years post-groundbreaking.
Siam will hold 28% in the project, while its subsidiary Thai Plastics and Chemical will hold 18%.
QPI Vietnam, a subsidiary of Qatar Petroleum International (QPI), Vietnam state oil monopoly PetroVietnam and Vietnam National Chemical (Vinachem) will hold the remaining stake.
As part of the JV, Qatar International Petroleum Marketing will supply the plant with propane and naphtha as feedstock, while PV GAS, a subsidiary of PetroVietnam, will supply ethane.
The proposed petrochemical plant will also be integrated with storage facilities, port, jetty, power plant, other utilities and downstream petrochemical products, including polyethylene, polypropylene and vinyl chloride monomer.
Siam Cement agreed to buy 30% of Indonesia's Chandra Asri Petrochemical for $442m in 2011 and Sulfindo Adiusaha for $700m.
