SCG Plans to Reopen Vietnam Plastics Plant by Mid-2027 Amid Supply Chain Challenges

Thailand's Siam Cement Group (SCG) plans to reopen its Long Son Petrochemicals (LSP) plant in Vietnam by mid-2027, following a suspension of operations due to supply chain disruptions caused by geopolitical tensions in the Strait of Hormuz. The announcement was made by SCG's CEO, Thammasak Sethaudom, who emphasized the company's strategy to reduce reliance on Middle Eastern feedstock.

The LSP facility, which produces high-quality polymers for both domestic and export markets, halted operations in late May 2025 as it faced challenges sourcing naphtha, a key oil-derived material for plastics. The closure was part of a broader response to the geopolitical instability that has affected supply chains across Southeast Asia, as InsideASEAN previously reported.

In an effort to enhance operational resilience, SCG is advancing its LSP Enhancement (LSPE) project, which aims to incorporate ethane sourced from the United States as an alternative feedstock. This shift is expected to not only stabilize supply but also reduce production costs significantly. The LSPE project, estimated at $500 million, is anticipated to lower greenhouse gas emissions, aligning with SCG's commitment to sustainable operations.

“Kulachet Dharachandra said that the geopolitical disruption changed their operating plans and that they are using the shutdown to move the ethane project forward and make the plant more reliable.”Kulachet Dharachandra, General Director of LSP

Kulachet Dharachandra, General Director of LSP, said that the geopolitical disruption changed their operating plans and that they are using the shutdown to move the ethane project forward and make the plant more reliable, highlighting the importance of reliability in the current market climate.

As part of the LSPE project, SCG is also undertaking maintenance and upgrades to ensure the plant's equipment remains safe and efficient. The company plans to restart operations in the second quarter of 2027 and complete commissioning of ethane operations by the end of the third quarter of 2027, approximately three months ahead of the original schedule.

In addition to the LSPE project, SCG Decor is investing about $48 million (1.6 billion baht) in technology upgrades and automation in Vietnam and Thailand to enhance production capabilities and competitiveness amid rising energy costs. This investment includes expanding the production capacity of glazed porcelain tiles at its Vietnamese facilities.