Hyosung (Seoul, South Korea), a producer of polypropylene (PP), will invest $1.2 billion to build a a propane dehydrogenation (PDH) and PP complex, and LPG storage facilities in Vietnam, the company says in a regulatory filing. The project will be in the Tan Thanh district of Ba Ria-Vung Tau Province near Ho Chi Minh City. Hyosung says it has signed a memorandum of understanding with the government of Vietnam to go ahead with the plan, which aims to increase the company's market share for PP in high-growth markets, such as Vietnam, China, and the rest of Southeast Asia.
The project will be implemented in two phases. Starting this year, Hyosung plans to invest $133 million for the LPG tank and $335 million for the first, 300,000-metric tons/year PP line. The second phase will involve an expenditure of $500 million and $225 million for a PDH unit and a second PP line, respectively. The second phase will double PP capacity at the site.
Hyosung has a manufacturing presence in Vietnam, producing spandex fiber and automotive tire cord in the Nhon Trach industrial zone of Dong Nai Province. The company operates PP plants at Ulsan, South Korea, based on the Hypol and Unipol processes. The company says it is also planning to add 200,000 metric tons/year of PP capacity in South Korea.