Hyosung Inks Mou With Vietnamese Government For PDH, PP Plants In Vietnam

Hyosung inks MoU with Vietnamese government for PDH, PP plants in Vietnam

09-Feb-17

Hyosung has signed a memorandum of understanding (MOU) with the Vietnamese government to build chemical plants in Vietnam, as per www.businesskorea.co.kr. Starting this year, the group will invest a total of US$1.2 bln (1.38 trillion won) to construct a propane dehydrogenation (PDH) production plant, polypropylene (PP) plant, liquefied petroleum gas (LPG) storage tank and LPG and petrochemical product warehouse at the Cai Mep Industrial Zone in Ba Ria-Vung Tau Province located near Ho Chi Minh in the Southern Vietnam.

The project will be proceeded in two stages. For the first stage, Hyosung will inject US$133 million (152.68 billion won) and US$336 million (385.73 billion won) respectively to build a LPG tank and PP production plant. For the second stage, it will invest US$496 million (569.41 billion won) and US$226 million (259.45 billion won) respectively to construct a PDH plant and PP No.2 plant. The group plans to locally produce PP, which is used to manufacture various containers, drain pipes, medical syringes and textiles, in Vietnam in order to improve the production efficiency.

Hyosung said, “We will boost our price competitiveness with the integrated production system ranging from LPG to PP and expand our share in markets with great potential, such as Vietnam, China and Southeast Asia.” However, the size of investments and schedule for the MOU can change, it added. Meanwhile, Hyosung has made investments of more than US$1.3 billion (1.49 trillion won) in the Nhon Trach Industrial Zone in Dong Nai Province, Vietnam, from 2007, and produces spandex, automotive tire codes with the highest global market share. Hyosung Vietnam has continuously expanded profits after 2009 and surpassed 1 trillion won (US$871.08 million) of sales from 2014.