Long Son Petrochemicals to suspend operations from mid-May

Long Son Petrochemicals to suspend operations from mid-May

Thailand's Siam Cement Group will temporarily suspend operations at its Long Son Petrochemicals plant in Vietnam from mid-May due to the prolonged Middle East crisis.

According to a filing sent to the Stock Exchange of Thailand on April 22, Siam Cement Group (SCG) said the situation in the Persian Gulf has remained highly uncertain, with no clear indication of near-term resolution. The company has taken measures to mitigate impacts, including sourcing feedstocks from alternative suppliers outside the Strait of Hormuz at significantly higher costs, in order to maintain operational stability.

Despite these measures, the prolonged situation – which remains beyond SCG's control – has continued to cause constraints in feedstock procurement in terms of both cost and continuity of supply. After careful consideration, SCG has determined that it is necessary to temporarily suspend operations at Long Son Petrochemicals Co., Ltd., Vietnam (LSP) from around mid-May. The suspension is estimated to incur fixed cash costs of approximately $7.1 million per month.

During the temporary suspension period, LSP will carry out maintenance activities and expedite preparations for the LSPE Project, which aims to increase ethane gas feedstock at the plant in Vietnam, in order to ensure operational readiness and support the plan to strengthen long-term competitiveness in line with the scheduled timeline.

Thammasak Sethaudom, president and CEO of SCG, said, "We will continue to monitor the situation closely and adjust its operating plans in response to the ongoing uncertainty, while giving due consideration to customers and all relevant stakeholders."

VIR