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Thai SCG halts operations at $5.4 bln Vietnam petrochemical complex

Siam Cement Group (SCG). , Thailand's largest industrial conglomerate, said on. Monday it has actually suspended business operation at its $5.4 billion. Long Son Petrochemicals complex in Vietnam after just one month. due to the chemicals' low margin.

The chemicals industry has been grappling with high. inventory and destocking for the previous couple of quarters, putting. pressure on numerous firms.

The resumption will depend upon worldwide vibrant demand, SCG. said in a statement to Reuters.

SCG did not provide a clear timeframe for the suspension but. expected the chemicals industry would remained tough well. into the 2025.

LSP, which began industrial operations in Vietnam's. southern province of Bachelor's degree Ria-Vung Tau on Sept. 30, is the first. integrated petrochemical complex in Vietnam and produces. polyethylene, polypropylene and fundamental chemicals.

In an interview with Reuters in 2015, SCG agents. stated the complex's capability would reach 1.3 million to 1.5. million tonnes. Overall need for Vietnam had to do with 3.3 million. tonnes of both polyethylene and polypropylene combined, it stated. at the time.

Recently, SCG likewise announced another $700 million. financial investment in the Vietnamese complex for storage of ethane. feedstock.

(source: Reuters)