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Hyosung MoU seeks to make plastic market self-sufficient

South Korea’s Hyosung Group has come closer to building a $1.2 billion complex that would expand its footprint in Vietnam and increase its added value chain.

Under the memorandum of understanding signed last week between Hyosung Group and the Vietnamese government, the group will invest a total of $1.2 billion 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 the southern province of Ba Ria-Vung Tau.

The complex is divided into two stages. In the first stage, Hyosung will inject $133 million and $336 million, respectively, to build an LPG storage tank and PP production plant. In the second stage, it will invest $496 million and $226 million, respectively, to construct a PDH plant and PP plant.

Hyosung said in its statement, “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.”

Currently, Vietnam relies on PP imports, with 1.04 million tonnes in 2014. PP is a thermoplastic “addition polymer” made from the combination of propylene monomers. It is used for a variety of applications, including packaging for consumer products, plastic parts for the automotive industry, and textiles.

When it entered Vietnam in 2007, Hyosung developed three fibre factories in the southern province of Dong Nai. In May 2015, Hyosung received the investment certificate for a fourth, $660 million fibre production plant, increasing its Vietnamese investment to $1 billion to date.

SOURCE: VIR

FEB 2017

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