Press Releases

De Raj Group signs MoU with Binh Son Refining & Petrochemical Company JSC for major refinery project in Vietnam

Cologne, 16th September 2019

De Raj Group AG announces the signing of a Memorandum of Understanding with Binh Son Refining & Petrochemical Company JSC (BSR) to finance and execute the expansion of it’s Dung Quất Refinery in Quang Ngai Province, Vietnam.  This is a highly profitable business with an annual turnover of about USD 4.6 Bn and a current market capitalization of USD 1.16 billion with a recorded EBITDA of about USD 290 million in 2018.

The value of the expansion is slated at USD 1.8 Bn to USD 2.0 Bn. De Raj is mandated to bring in the financing for the project in exchange for equity and trading rights.

BSR’s main business includes production and trading of Petrochemical products including LPG, Propylene, Gasoline, Jet A1, Diesel, Fuel Oil and Polypropylene. The Refinery is 965 hectares and it currently has 1,543 engineers and technicians employed on site.

The competitiveness of the refinery is strongly supported by high GDP growth forecasted at 6.8% over the next 5 years with a population of roughly 96m. The infrastructure industry in the country in booming along with double digit growth in motorbikes and automobiles leading to higher consumption of gasolines. There is also strong Government support in Vietnam for this growing industry and, being within close proximity of it’s biggest consumers (China, India, etc.), there is always potential growth through exportation.