SCG chemicals' Vietnam unit resumes full operations

HANOI, Aug 20 (Reuters) - Vietnam's Long Son Petrochemicals, a unit of Thailand's SCG Chemicals, has resumed full operations following a suspension from November last year, it said on Wednesday.

The resumption of operations at the $5.4-billion complex in southern Vietnam came after an improvement in operating margins, the company said in a statement.

"While global market conditions remain challenging, this restart reflects LSP's proactive approach to seize an operational window while maintaining ongoing assessment of market movements," it said.

LSP is currently investing $500 million in a project to enhance the plant's competitiveness by adopting ethane as feedstock, with completion expected in 2027.

"Ethane diversification is a critical step in strengthening our long-term competitiveness," said Kulachet Dharachandra, General Director of LSP.

A long-term ethane supply agreement will further deepen trade and economic ties between Vietnam and the United States, he said, suggesting the complex will use American ethane.

Long Son Petrochemicals has annual capacity to produce 500,000 tons of high-density polyethylene, 500,000 tons of linear low-density polyethylene and 400,000 tons of polypropylene, using mostly naphtha and propane imported from the Middle East as raw materials.