Siam Cement Group (SCG), Thailand’s leading cement manufacturer and industrial conglomerate, announced on Monday the suspension of commercial operations at its $5.4 billion Long Son Petrochemicals facility in southern Vietnam, citing low profitability of the chemicals produced, according to the report by Reuters.
The company said that the resumption of LSP will depend on global dynamic demand, according to Reuters, citing a statement from SCG that did not specify a clear timeline for the suspension.
The company is facing differing perspectives on the suspension, with some viewing it as a potential loss of revenue, while others see it as a strategic move to avoid operating at a loss due to thin profit margins.
The share price of The Siam Cement Public Company Limited (SET: SCC) stayed elevated with a 1% gain at THB211.00 per share in the afternoon session on Monday.
However, the share price of SCC has plunged 31% this year due to unfavourable market conditions for petrochemical products.
