The Siam Cement Public Company Limited (SET: SCC) intends to invest an additional $500 million in its Long Son Petrochemicals Complex, raising the total project cost to $5.6 billion, according to the source.
Scheduled for completion in 2027, the expansion aligns with Siam Cement’s aim to grow its overseas presence in response to weaker domestic performance. The Long Son facility, situated in southern Vietnam, has recently ramped up capacity utilization to above 85% after restarting operations in August.
Vietnam remains a strategic growth hub for SCC, driven by attractive operating costs, robust economic growth, and an extensive array of free trade agreements. The company has already allocated close to $7 billion across 28 projects in Vietnam and continues to shift the production of cement, building materials, and key chemicals for export to the country.
At the Long Son site, half of the plant’s output is designated for major international markets, such as China, Europe, and Australia, with the remainder addressing local demand.
Long Son has weighed on Siam Cement’s earnings, particularly following a temporary closure last year due to subdued demand and lower petrochemical prices. The company anticipates improved results as operations scale up, aiming for $1.5 billion in revenue by 2026 at full capacity and a move to positive cash flow by 2028. However, it has not provided a specific timeframe for when the complex will become profitable.
Notably, Siam Cement reported a third-quarter net loss of 669 million baht, in contrast to a profit a year earlier. The shift in focus toward Vietnam highlights a broader strategy to stabilize earnings through geographic diversification and to enhance competitiveness within the global petrochemicals sector.
