Long Son Petrochemicals, owned by SCG Chemicals, will start commercial production at its petrochemical complex in southern Vietnam in September.
The company is in the process of testing each operating unit at the complex, Siam Cement Group's Roongrote Rangsiyopas.
Testing will be completed in July or August, so commercial operations could start around September, Reuters reported.
The plant in Ba Ria Vung Tau province will produce polyethylene, polypropylene and basic chemicals.
"The total demand for the country is around 3.3 million tons of both polyethylene and polypropylene combined, our complex (production capacity) is about 1.3-1.5 million tons. So, I would assume that the majority of the products that will be consumed locally," he added.
He also said for the first year, some of the products will be exported to countries in Southeast Asia like Thailand and Indonesia to balance the supply and demand until Vietnam can fully absorb the supply.
Petrochemical demand has been struggling globally recently amid economic headwinds and poor demand in China.
Refiners' profit margins on processing naphtha to make ethylene turned negative this month for the first time since October.
SCG Chemicals to start production at petrochemical complex
