South Korean chemical firm Hyosung Corp. is expanding its investments abroad, having recently inked an agreement with the Vietnamese government for a PP plant and its latest being an MOU with Iran’s state-run National Petrochemical Company to set up a PP plant, reported the Pulse news agency.
The company said it has been in talks with its Iranian counterpart to determine the feasibility of its PP business in the country, but has not made any decision yet.
Industry experts say they expect Hyosung looking to expand its offshore manufacturing network to set up a PP production base in Iran.
Last month, the company inked an agreement in Vietnam to build a 300,000-tonne/year PP production plant at a cost of US$336 million. It will invest US$1.2 billion in total to build a propane dehydrogenation (PDH) and PP complex, as well as liquefied petroleum gas (LPG) storage tank and LPG and petrochemical product warehouse at the Cai Mep Industrial Zone in Ba Ria-Vung Tau Province, located near Ho Chi Minh, Vietnam. plasticsandrubberasia.com/mar2017/company3.html
Meanwhile, Iran has been attracting investments from abroad on expectations on economic renaissance following the lifting of international sanctions. The country has the world’s second largest natural gas deposit and the fourth largest crude oil reserve on top of its geographical advantage offering easy access to other Middle Eastern markets as well as Europe and Africa.
Currently, South Korean companies are working on nearly 60 petrochemical projects in Iran, said the Pulse.