Page 53 - Plastics News May 2017

BUSINESS NEWS

South Korea's four largest petrochemical makers plan to invest US$9

bln in 2017

outh Korea's 4 largest petrochemical companies are the like.SK Innovation is planning to invest three trillion
Splanning to make an investment of approximately 10 won this year and most of the amount is likely to go to
trillion won (US$9 bln) in total this year, rising by over 20% SK Global Chemical, its subsidiary in the petrochemical
from a year ago, according to report from businesskorea. industry, for restructuring of its business to revolve around
LG Chem’s capital expenditure for this year is estimated chemical business. In this context, SK Global Chemical
at 2.7 trillion won (US$2.4 bln. “My company’s average acquired Dow Chemical’s ethylene acrylic acid business
annual investment has been fixed at 3 trillion won (US$2.7 for 420 billion won (US$378 million) in February this year.
billion) for 2017
to 2019,” said LG
Chem CFO Jung Ho- Reliance Industries, Hanwha
young. 1.7 trillion Total to join Paraxylene Asian
won (US$0.9 bln) is
scheduled to go to Contract Price negotiations
its battery business tate-run Oil and Natural Gas Corp. Ltd (ONGC) plans to
and basic material Sraise Rs1,671 crore for its associate company, ONGC
business this year. Petro additions Ltd
In addition, an R&D (OPaL), as per two
investment of one trillion won is planned for its new officials aware of the
businesses such as water treatment and biotechnology development have
development.The capital expenditure of Lotte Chemical, been reported by
which posted a profit of 815.2 billion won (US$733 mln) Business Standard.
in Q1 of this year, is expected to amount to 2 trillion won ONGC holds 49.36%,
(UA$1.8 bln) this year. GAIL (India) Ltd
49.21% and Gujarat
120 billion won (US$10.8 miln) is slated to go to its State Petroleum Corporation (GSPC) 1.43% stake in
special synthetic rubber manufacturing facilities about OPaL, as of March 2016.
to be completed in Yeosu, South Korea and 300 billion OPaL operates a US$4.5 billion mega petrochemicals
won (US$270 mln) is to be invested in its ethylene complex in the Dahej special economic zone (SEZ),
manufacturing plant scheduled to be completed in the inaugurated by Prime Minister Narendra Modi earlier
second half of this year in Malaysia. This company is this month on 7 March after much delay and cost
planning to further increase its investment through the overruns. “By next month we would be infusing equity
IPO of Lotte Chemical Titan in the country and is currently in OPaL to the extent of Rs1,671 crore which we plan
expanding its facilities in its ethylene cracking complex to raise through private placements of compulsory
(ECC) in Yeosu in order to increase its production capacity convertible debentures,” an official said on condition
from one million tons to 1.2 million tons. Moreover, of anonymity. The plant will annually produce 1.4 mln
its ECC construction project in Louisiana is planned tons of polymers such as linear low density polyethylene
to be completed in the second half of next year at an and high density polyethylene, polypropylene and
investment of 2.9 trillion won (US$2.6 billion). Hanwha 500,000 tons of chemicals like benzene, butadiene and
Chemical’s subsidiary Hanwha Total, in the meantime, pyrolysis gasoline, among other products. ONGC, GAIL
recently decided to invest 500 billion won (US$450 mln) (India) and GSPC also plan to bring private partners into
to expand its naphtha cracking center (NCC) in the Daesan the company. Talks are on with Kuwait-based energy
company PIC, an arm of Kuwait Petroleum Corp.
Petrochemical Complex. Furthermore, it is going to invest
one trillion won in its adhesive manufacturing facilities and

53 May 2017 | Plastics News