Lotte Chemical, a major chemicals company in South Korea, partnered with GS Energy, an energy service provider, to set up a joint-venture petrochemical plant for Bisphenol A (BPA) and C4 oil products.
The two companies agreed to set up a joint venture in H2-2019, with 51% owned by Lotte Chemical and 49% by GS Energy. The new joint venture will invest 800 billion won (US$679 million) by 2023 to build a plant capable of producing 200,000 tons of BPA products and 210,000 tons of C4 oil products annually.
C4 oils are used to produce butadiene, a synthetic rubber material, and tertiary-butyl alcohol (TBA), a synthetic marble material, through extraction with hydrocarbon compounds.
Lotte Chemical will use BPA to increase the price competitiveness of polycarbonate products and expand its C4 oil business. "We are continuously pushing to optimize our product portfolio to actively respond to changes in the petrochemical industry environment and strengthen our business competitiveness," Lotte Chemical CEO Lim Byung-yeon said in a statement. GS Energy said that through the joint venture, it can strengthen its business portfolio in the petrochemical sector. "We expect the joint venture will serve as an opportunity to strengthen the competitiveness of the energy business while diversifying its business portfolio," said GS Energy CEO Huh Yong-soo