28 June 2018
South Korea’s Samsung Engineering Co. clinched two petrochemical plant orders worth a combined 615.3 billion won ($548.5 million) from Vietnam’s Long Son Petrochemicals Co.
Under an exclusive engineering, procurement and construction deal, Samsung Engineering would be in charge of building the Package B high-density polyethylene (HDPE) plant and the Package C polypropylene (PP) plant, the company said Thursday. The plants are worth 338.3 billion won and 277 billion won, respectively, amounting to 11.1 percent of its total 2017 sales.
The HDPE plant will have an annual capacity of 450,000 tons and the PP plant 400,000 tons, the company said. It plans to complete the construction by 2022.
The project is part of the Long Son Petrochemical Complex, an industrial site in the southern province of Ba Ria-Vung Tau that would be the biggest of its kind in Vietnam when completed.
“We expect this deal to help bolster our market presence in Vietnam, Thailand and Southeast Asia at large,” said a Samsung Engineering official.
This is the Korean company’s fifth project with Long Son Petrochemicals, a subsidiary of Siam Cement Group, Thailand’s largest private sector company.
Samsung Engineering has built a solid track record in the polyethylene field, completing more than 10 related projects overseas.
Shares of Samsung Engineering closed Thursday up 2.61 percent at 15,700 won.