Banks loan 146m for plastics plant

Banks loan $146m for plastics plant

12:38:19 | 18/10/2009

HSBC, BNP Paribas and Calyon banks will co-provide a syndicated loan of US$145.7 million to finance the construction of a polypropylene plant in the central province of Quang Nam.

The loan agreement between the banks and the Viet Nam National Oil and Gas Group (PetroVietnam) was signed yesterday in Ha Noi.

Earlier, PetroVietnam had signed an engineering, procurement and construction contract, worth $174.38 million, with a consortium headed by the South Korean Hyundai Engineering Co Ltd and received $20 million loan from local banks to develop the plant.

"With the newly-signed agreement, which provides the remaining capital for the construction of the plant, the three banks would make an effective contribution to the project’s success," said PetroVietnam’s director general Phung Dinh Thuc.

The polypropylene plastic plant is designed to cover nearly 15ha in Dung Quat Economic Zone and has a capacity to produce 150,000 tonnes of polypropylene per year.

The propylene from the Dung Quat Oil Refinery would be used as the raw material input to manufacture the polypropylene.

The plant is expected to start its trial operation in February, 2010, and it will be handed over to PetroVietnam in June.

The group said its total revenue in the first nine months of this year was VND186.1 trillion ($10.5 billion), a year-on-year decrease of 17 per cent, mainly owing to the lower price of crude oil in the world market.

Of that sum, more than $5.67 billion came from crude oil exports, which amounted to nearly 11.7 million tonnes.

PetroVietnam is expecting to notch up a revenue of VND260 trillion ($14.6 billion) by the end of the year, of which $7.2 billion will come from crude oil exports. It expects to pay VND88 trillion to the State budget for the whole year.

This news collected from the internet.