South Korea’s major refiner Hyundai Oilbank Co. and petrochemical firm Lotte Chemical Corp. are to tie-up to build a heavy feed petrochemical complex (HPC) at a combined investment of US$2.5 billion.
Hyundai Oilbank CEO Moon Jong-bak and Lotte Chemical CEO Kim Gyo-hyun signed an agreement to invest additionally in their joint-venture Hyundai Chemical, to construct an HPC on a 500,000-sq-m site at Hyundai Oilbank’s manufacturing plant in Daesan, South Chungcheong Province.
The new facility will produce 750,000 tonnes/year of ethylene, 750,000 tonnes/year of PE and 400,000 tonnes/year of propylene.
Hyundai Oilbank will benefit from the partnership to reinforce the vertical integration of its businesses ranging from refining to manufacturing petrochemical products including aromatics and olefins.
Meanwhile, Lotte Chemical has been bolstering its business around the world by conducting various projects including ethane cracker construction in the US and Central Asia, naphtha business in Southeast Asia and large-scale residue cracking business in Korea.
Hyundai Chemical plans to initiate the construction of the HPC in the latter half of this year with an aim to start operation at the end of 2021. The companies said they expect the facility would contribute to increasing the nation’s export by 3.8 trillion won a year as they plan to sell most of the products manufactured at the facility to the global market.