Hyosung Vina Chemical launches $1.3 billion PP plant and LPG storage cavern

PP Hyosung Vina Chemical has taken into operation its $1.3 billion new project

The project was approved in principle in May 2018 with the total investment capital of $1.3 billion and the construction began later the same year.

The PP 1 plant officially came into operation in March 2020, meanwhile, the above plant and LPG storage cavern started pilot operation in September this year.

Choi Young Gyo, general director of Hyosung Vina, said the underground LPG storage cavern is the largest of its kind in Southeast Asia with a total capacity of 240,000 tonnes.

“The construction faced massive difficulties and challenges due to the COVID-19 pandemic. However, thanks to support from the local authorities and the company’s effort, the construction was finished on-time. As of late November, the total disbursed capital was $1.275 billion, equaling 98 per cent registered capital. The project will contribute $80 million per year to the province’s state budget.”

Once fully operational, the complex will operate with the capacity 650,000 tonnes of PP each year, 300,000 of which will be supplied to the Vietnamese market, helping to raise the competitiveness of domestic producers.

Each year, Vietnam produces 850,000 tonnes of PP, which is a key material used in making plastics for packaging, automotive parts, and more. The majority comes from Nghi Son Refining and Petrochemical LLC (400,000 tonnes per year), Binh Son Refining and Petrochemical JSC, and Hyosung Vina Chemicals. Meanwhile, the demand for PP production in the domestic market in 2020 was 1.85 million tonnes, a figure that is forecast to increase. According to the calculation of adjusted present value, the import cost of PP is an average of $1,300 per tonnes.

Entering Vietnam in 2007, Hyosung Group invested a total of $3.4 billion, with $1.8 billion in southern Dong Nai province, $250 million in the central province of Quang Nam, and $1.3 billion in Ba Ria-Vung Tau.