Thailand’s Siam Cement Group (SCG) recently announced that due to the situation in the Middle East, it will suspend operations at the Long Son Petrochemical Complex (LSP) in Long Son Village, Ho Chi Minh City, as well as the olefin plant of Rayong Olefins Company (ROC) in Thailand.

SCG stated that amid the ongoing conflicts in the Middle East, the group attempted to source alternative raw materials by bypassing the Strait of Hormuz, which led to a sharp surge in costs and made stable production unsustainable. During the shutdown of the LSP plant, maintenance costs are expected to increase by approximately 250 million Thai baht per month. While idle, the plant will carry out maintenance and accelerate preparations for ethane-based projects. The group has signed a 15-year long-term contract to import around 1 million tons of ethane from the United States annually. Going forward, it aims to enhance long-term competitiveness through stable raw material procurement costs and reduced greenhouse gas emissions.

The LSP is a large-scale project of Siam Cement Group with a total investment of 5 billion US dollars. Construction of the complex started in 2018, and it was originally scheduled to commence commercial operation in September 2024. However, due to skyrocketing costs, operations were suspended just one month later. Supported by lower crude oil prices, the project resumed production in August 2025.

Currently, a 500-million-US-dollar upgrading project is underway at LSP to expand ethane raw material usage. The renovation is expected to be completed in 2027, by which time operating costs will be cut by over 30%.