SEOUL, Jul. 3 (Korea Bizwire) — Hyundai Oilbank Co., a refining unit of Hyundai Heavy Industries Group, said Wednesday it will invest 260 billion won (US$221 million) to beef up its petrochemicals production.
Hyundai Oilbank said its affiliate Hyundai Chemical Co. will chip in 100 billion won to expand its production of mixed xylene, a core material for BTX (benzene, toluene and xylenes) production.
The investment will increase the company’s mixed xylene output to 1.4 million tons from 1.2 million tons per year.
Hyundai Oilbank added its subsidiary Hyundai Cosmo Petrochemical Co. will inject 160 billion won to increase its paraxylene output to 1.36 million tons from 1.28 million tons per year.
The expansion process is expected to be completed by June 2020, it added.
“These petrochemicals capacity expansions will increase our operating profit by 86 billion won,” the company said in a statement.
“Once our Heavy Feed Petrochemical Complex (HPC) starts operating in 2022, we believe petrochemicals will account for half of the company’s operating profit from the current 25 percent level.”
Hyundai Oilbank posted operating profit of 100.8 billion won in the first quarter of the year, down 64.3 percent from a year ago, while its sales rose 7.6 percent on-year to 5.14 trillion won.