A mixed xylene plant of Hyundai Chemical Co., a subsidiary of Hyundai Oilbank, in Seosan, South Chungcheong Province. (image: Hyundai Oilbank)
SEOUL, Oct. 12 (Korea Bizwire) — Hyundai Chemical Co. has completed the construction of a petrochemical complex using cheap heavy fuel oil as a feedstock in South Korea’s western city of Seosan, a move that diversifies its business portfolio and boosts the country’s exports, the industry ministry said Wednesday.
The heavy-feed petrochemical complex was built at major refiner Hyundai Oilbank’s Daesan petrochemical complex in Seosan, about 100 kilometers southwest of Seoul, with a capacity of producing 850,000 tons of ethylene and 500,000 tons of polypropylene per year, according to the industry ministry.
It is the country’s first HPC project that uses such cheap materials as heavy fuel oil and by-product gas, compared with existing facilities using liquefied petroleum gas and other materials.
Global energy group Shell was the only private entity that has petrochemical factories using low-price materials.
Hyundai Chemical is a joint venture between Hyundai Oilbank and Lotte Chemical Corp.
Compared with existing petrochemical factories, the newly built one is expected to export 1.15 million tons of petrochemical products per year worth 3.8 trillion won (US$2.65 billion) based on its price competitiveness, the ministry said in a release.
“This HPC project has heightened the competitiveness of the domestic petrochemical industry. The government will actively ease regulations to help companies better achieve goals through new projects and investment,” Second Vice Industry Minister Park Il-jun said during a ceremony to mark the completion of the farm.
The ceremony was also attended by HD Hyundai chief Chung Ki-sun and other officials of related firms, the ministry said.
(Yonhap)
