The polyvinyl chloride (PVC) plant of Phu My Plastics & Chemicals Company Ltd (PMPC), a joint venture between PETRONAS, PETROVIETNAM and TRAMATSUCO, was officially operied today by the Chairman of Ba Ria – Vung Tau People’s Committee, His Excellency Nguyen Tuan Minh. The official opening ceremony of the plant was also attenced by several Government Ministers of Vietnam, President & Chief Executive of PETRONAS Tan Sri Dato Mohd Hassan Marican President and CEO of PETROVIETNAM Mr Nguyen Xuan Nham, General Director of TRAMATSUCO Mr Le Hong Phuoc and other senior officialls of PMPC’s joint venture partners.
The PVC plant, with a production capacity of 100,000 metric tons per year (MPTA), is strategically located within the petrochemicai area of Ba RIA – Vung Tau Province about 35 kilometres southeast of Ho Chi Minh City. It is producing PVC resins of various grades, which are the necessary raw materials for the manufacture of a variety of plastic products. The total capital investment is US$70 million.
PETRONAS, Malaysia’s national petroleum corporation, hoIds a 50 per cent equity in the joint venture, Its Vietnamese counterpart, PETROVETNAM has a 43 per cent stake, while TRAMATSUCO, the trading arm of the People’s Commiree of Ba Ria – Vunq Tau Province, owns the remaining seven per cent equity.
“We are pleased that the project was completed within schedule and we hope to double its capacity to 200,000 MTPA in the near future to meet the growing demand in line with the rapid economic growth of Vietnam,” said Encik Kalantar Mastan Mohamed, the General Director of PMPC.
The import substitution project now sells about 70 per cent of its output to the domestic market while the remaining quantity is exported to customers in the region. The plant sources its feedstock, vinyl chloride monomer (VCM), from PETRONAS joint venture VCM plaint in Kertih, Malaysia.
The project is also expected to help spur spin-offs in plastic fabrication and end product manufacturing industries for both local and export markets. Apart from the spin-offs the project also involves the transfer of technical expertise to local employees.
Today’s ceremony marks another miiestone in the relationship between all PMPC’s partners. it also reaffirms the partners’ commitment to the long term growth and developmert of the plastics industry in Vietnam.
PETRONAS’ President and Chief executive Tan Sri Deto’ Mohd Hassan, speaking at the ceremony, said:
“Vietnam holds a very special significance to PETRONAS. Together with PETROVIETNAM as our strategic partner, we have ventured into several projects, providing us the opportunity to contribute in a small way to the delielopment of Vietnam’s oil and gas industry in particular and its economy in general.
“Today, we are witnessing another success story between PETRONAS and PETROVIETNIAM tn;s tirre with the additioin of TRAMATSUCO, I would like to record our deepest appreciation to our Vietnamese partners for making this joint venture project a realilty,” he added,
PETRONAS’ involvement in Vietnam’s petrochemical industry began in 1995 when it was given a mandate by the Government of Vietnam to jointly conduct a study on the development of Vietnam’s Petrochemical Master Plan. The study provided Vietnam with a blueprint for the systematic development of its petrochemical industry, One of the projects identified in the master plan was the development of the PVC industryy, To jumpstart Vietnam’s petrachemical industry, PMPG was incorporated to construct and operate, a PVC plant to produce high quality PVC resin as feedstock to support the needs of plastic manufacturers in Vietnam.
PETRONAS subsidiary, OGP Technical Services Sdn Bhd, was appointed the project’s management consultant, PMPC also appointed OGR in collaboration with PETROVIETNAM Manpower Training College, to manage and provide training services for PMPC’s employees in plant operation and maintenance, health, safety and environment; as well as English language courses.
Tan Sri Mohd Hassan said PETRONAS would like to be seen as a partner that has been able to contribute to the well being of Vietnam and its people by adding value to the country’s oil and gas resources as well as helping in the development of its human capital.
`VVe have and will continue to conttibute to the socio economic development of Vietnam especially in the field of education, technology transfer, employment opportunities as well as human resource and skills development.
“As part of our effort to help build a strong hurnan resource base for the country’s petroleum industry, we are providing educational sponsorship to deserving Vietnamese students to pursue their studies at Universiti Teknologi PE TRONAS in Malaysia,” he added.
About PETRONAS
PETRONAS is the national petroleum corporation of Malaysia engaged in a wide spectrum of petroleum activities. Incorporated in 1974, PETRONAS has evolved into a highly extensive and fully integrated business entity with operations in more than 30 countries worldwide. PETRONAS made its entry into Vietnam’s oil and gas industry in 1991 and is now actively involved in both the upstream and downstream sectors of the industry.
For PETRONAS, its involvement in PMPC as with its other projects in Vietnam stands as a testimony of its efforts to help provide a meaningful contribution to the overall development of Vietnam and the Vietnamese people. it also hopes hat the project will assist in enhancing and strengthening the bilateral relations between Malaysia and Vietnam.
About PETROVIETNAM
PETROVIETNAM, the oil and gas corporation of Vietnam, was established in 1975. Since its inception, it has grown into fully integrated oil and gas entity engaged in a broad spectrum of petroleum and related value adding business activities in both upstream and downstream sectors. Today, with over 30 subsidiaries and associated companies, PETROVIETNAM operates not only within the boundary of Vietnam but also n the global area.
PMPC is PETROVIETNAM’s first PVC project and is one of the several joint ventures undertaken with PETRONAS. Apart from this, the two partners are also involved in a liquefied petroleum gas (LPG) terminalling, bottling and distribution business as well as in upstream oil and gas activities.
About TRAMATSUCO
TRAMATSUCO is the trading arm of the People’s Committee of Ba Ria Vung Tau Province, Vietnam. Founded in 1987, it is engaged in a wide variety of manufacturing activities of consumer items for export, mainly to Taiwan, Korea and the European Union. It also cooperates with several local enterprises to produce aid export furniture and household interior decoration items. TRAMATSUCO also provides materials and technology in the field of industry, agriculture and marine services.
TRAMATSUCO’s involvement in PMPC marks its entry into the petrochemical manufacturing business. The venture is expected to enhance its position in the efforts of contributing to the socio economic development of the province in particular and of Vietnam in general.