The Long Son Petrochemical Complex (LSP) is set to temporarily halt operations from mid-May, as announced by SCG on 22/4. This decision stems from the ongoing Middle East conflict, which has severely impacted the cost and continuity of input material procurement. The suspension is estimated to incur fixed cash costs of approximately 250 million baht, equivalent to over 200 billion VND, each month.

SCC, an SCG subsidiary and owner of LSP, has actively sought to mitigate the conflict's effects by exploring alternative raw material suppliers outside the Hormuz Strait. However, SCC's assessment indicates that the situation in the Middle East remains highly uncertain, posing persistent challenges to securing essential input materials.

During the temporary shutdown, LSP plans to conduct maintenance activities and expedite preparations for a 500 million USD renovation project. This project aims to diversify its feedstock portfolio by incorporating ethane alongside its current use of naphtha (a flammable, colorless or slightly yellow liquid hydrocarbon mixture) and propane (a colorless, odorless, flammable gas, often compressed into liquid LPG).

Long Son Petrochemical Complex from above. *Photo: LSP*

This is not the first time SCC has announced such a measure. On 10/3, SCC notified the Stock Exchange of Thailand about its plans to temporarily suspend operations at both Rayong Olefins' olefin plant in Thailand and the Long Son Petrochemical Complex in Vietnam.

Thammasak Sethaudom, President and Chief Executive Officer of SCC, stated in a document, "SCC will continue to closely monitor the situation and adjust operational plans to respond to ongoing uncertainty, while fully considering the interests of customers and all stakeholders."

Located in Long Son commune, TP HCM, the Long Son petrochemical complex represents an investment exceeding 5 billion USD. It stands as Vietnam's first integrated petrochemical complex, featuring an olefins plant with a capacity of 1,35 million tons per year, three polyolefin plants with a combined capacity of 1,4 million tons per year, along with a comprehensive system of tanks, a port, and related utilities.

LSP's product range includes essential plastic resins such as polyethylene (PE: HDPE & LLDPE) and polypropylene (PP), which are supplied to both the Vietnamese domestic market and for export.

The complex previously experienced a temporary halt in 10/2024 due to fluctuations in oil prices and the impacts of Covid-19. Operations resumed in 8/2025, concurrently with the launch of a renovation project slated for completion in late 2027. This initiative aims to reduce operating costs by over 30%, lower greenhouse gas emissions, and bolster long-term competitiveness.