Sumitomo Mitsui appointed financial adviser for SCG project in Vietnam

10-Oct-13

Siam Cement Group (SCG) expects to start construction of its petrochemical complex in Vietnam in 2015 and complete it in 2018, president and chief executive Kan Trakulhoon in Nationmultimedia.com. The project will utilise technology that enables the cracker to use natural gas and naphtha alternately as raw material, which will enable the plant to reduce production costs. In 2012, SCG entered a joint-venture agreement in the project with QPI Vietnam (a subsidiary of Qatar Petroleum International) and the Vietnam National Oil and Gas Group (PetroVietnam). SCG will hold 46% in the project, while PetroVietnam and the Qatari partner will own 29% and 25%, respectively, although the exact shareholding proportion will be reviewed later. SCG has met with executives of Japanese banks, including Sumitomo Mitsui Banking Corp, Bank of Tokyo-Mitsubishi UFJ and the Japan Bank for International Cooperation, which have committed to providing financial support to the project. The company has appointed Sumitomo Mitsui Banking Corp as financial adviser for the project. The project is now selecting companies to take charge of engineering procurement construction management, and SCG has invited companies to propose the price-bidding document. The complete selection process is expected to take between nine and 12 months.