South Korean Hyosung Group is awaiting the Vietnamese prime minister’s approval to kick off the construction of its $1.2-billion polypropylene (PP) manufacturing plant located at Cai Mep Industrial Zone in the southern province of Ba Ria-Vung Tau.
|Hyosung Group is now awaiting the prime minister's approval to start (Source: Reuters)
According to Nguyen Anh Triet, director of the Cai Mep Industrial Zone Management Authority, told VIR that the Ministry of Industry and Trade has approved the investment planning of the project. The investor had completed the administrative procedures to implement the project, while simultaneously the province completed the site clearance and handed over the land to the investor.
“Next week, the management authority will submit the application documents for the project to the prime minister for approval. The investor will kick off the construction soon after receiving the prime minister’s approval,” Triet added.
According to the plan, the complex is divided into two stages. In the first stage, Hyosung will inject $133 million and $336 million, respectively, into building a liquefied petroleum gas (LPG) storage tank and PP production plant with an annual capacity of 600,000 tonnes per year.
In the second stage, it will invest $496 million and $226 million, respectively, to construct a propane dehydrogenation (PDH) plant and another PP plant, as well as a petrochemical product warehouse.
Earlier in February 2017, representatives of Hyosung Group and the Vietnamese government signed the memorandum of understanding (MoU), marking a new step in implementing the project.
Speaking at the MoU signing ceremony, the representative of Hyosung said, “We will boost our price competitiveness with the integrated production system ranging from LPG to PP and expand our share in markets with great potential, such as Vietnam, China, and Southeast Asia.”
PP is a thermoplastic “addition polymer” made from the combination of propylene monomers. It is used for a variety of applications, including packaging consumer products, plastic parts for the automotive industry, and textiles.
Regarding the investor, Hyosung is a multidisciplinary company operating in the textile, chemical materials, trading, construction, power and industrial sectors. It currently has a global network focusing on Asia, Europe, and America.
Hyosung entered Vietnam in 2007 and developed three fibre factories in the southern province of Dong Nai. In May 2015, Hyosung received the investment certificate for a fourth, $660-million fibre production plant, increasing its Vietnamese investment to $1 billion to date. This new investment will make Hyosung’s first PP plant in a foreign market.