Fitch: SCG's Long Son complex faces extended shutdown until 2026
by ChemOrbis Editorial Team - content@chemorbis.com
According to Fitch Ratings, Siam Cement Group’s (SCG) Long Son Petrochemicals complex is likely to remain suspended for most of 2025 as petrochemical spreads are likely to remain weak. The agency expects commercial operations to resume in 2026 at the earliest once the spreads reach a more favorable level.
The $5.4 billion complex has faced several production issues since its startup in December. Force majeure was declared following an outage in February, and commercial operations resumed on September 30. In mid-October, the complex was shut again amid higher production costs and lower chemical margins.
During the suspension period, SCG will focus on the $700 million Ethane Feedstock Enhancement project to upgrade the complex. The initiative aims to reduce production costs and enhance raw material flexibility, with completion expected by the end of 2027.
According to ChemOrbis Production News Pro, SCG houses 1 million tons/year of ethylene, 500,000 tons/year of propylene, 500,000 tons/year of LLDPE, 500,000 tons/year of HDPE and 400,000 tons/year of PP capacity at the complex.
The $5.4 billion complex has faced several production issues since its startup in December. Force majeure was declared following an outage in February, and commercial operations resumed on September 30. In mid-October, the complex was shut again amid higher production costs and lower chemical margins.
During the suspension period, SCG will focus on the $700 million Ethane Feedstock Enhancement project to upgrade the complex. The initiative aims to reduce production costs and enhance raw material flexibility, with completion expected by the end of 2027.
According to ChemOrbis Production News Pro, SCG houses 1 million tons/year of ethylene, 500,000 tons/year of propylene, 500,000 tons/year of LLDPE, 500,000 tons/year of HDPE and 400,000 tons/year of PP capacity at the complex.
More free plastics news
Plastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...- March hints at further hikes in European PP, PE markets
- India’s PVC market dips to new lows on Taiwan’s March cuts, players seek signs of bottom
- Q1 turnarounds uplift Mid-East PP, PE markets in February; will it spill over to March?
- SE Asia’s indefinite PE shutdowns: A market in crisis as demand woes threaten survival
- Türkiye’s PPH markets perform better than copolymers in February
- Margin recovery priorities outweigh supply imbalances in European PVC markets
- Asian PVC demand stagnant; recovery hopes shift to end of Q1
- Tough slog in S Korea’s petchem industry spells disappointing 2024 financial results; will government's recent plan help weather the storm?
- China’s PP, PE markets face post-holiday supply surge and tepid demand
- A tug-of-war unfolds in Türkiye as PVC demand struggles against rising costs
