Hyosung petitions for $1.2 billion factory in Ba Ria-Vung Tau

November 08, 2016 | 10:15

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South Korean Hyosung Group is seeking the Ba Ria-Vung Tau Industrial Zone Management Authority’s approval to develop a complex of a polypropylene production factory and a liquefied petroleum gas (LPG) depot, with a total investment capital of $1.2 billion, according to newswire Diendandoanhnghiep.

Engineers check the condition of the oil pipeline at Cai Mep Industrial Zone in Ba Ria-Vung Tau province. The industrial zone is set to become Hyosung's next area of operation with PP factories and LPG storages to be built. - VNA/VNS Photo Ha Thai

The complex is expected to cover an area of 60 hectares in Cai Mep Industrial Park, in Tan Thanh district.

The $1.2 billion capital will be disbursed in two phases. Accordingly, in the first phase, the investor will pour $133 million into constructing the LPG depot and $336 million into the polypropylene factory, which would have an annual output capacity of 300 million tonnes of polypropylene.

In the second phase, the investor will construct a propane dehydrogenation (PDH) factory with the total investment capital of $496 million and the second polypropylene factory worth $226 million.

Hyosung is one of South Korea’s fifteen largest firms which specialise in manufacturing tire cord, spandex, power distribution equipment, and fabric material. Its business network spans across Asia and Europe, Africa, and the Americas. Hyosung’s luxury fibre volume makes up 50 per cent of the fibre market in the US and numerous countries in Europe and Asia.

Entering Vietnam in 2007, Hyosung developed three fibre factories in the southern province of Dong Nai. In May 2015, Hyosung received the investment certificate for the fourth, $660 million fibre production plant, increasing its Vietnamese investments to $1 billion to date.