Petrochemical majors in S Korea seek to diversify export destinations and set up overseas production


In a bid to reduce dependence on China, petrochemical majors in South Korea, led by LG Chem Ltd., are seeking to diversify their export destinations and establish more overseas production facilities, in a bid to reduce their dependence on China, as per sources in Yonhap.
 LG Chem, the country’s No. 1 player in the chemicals sector, is attempting to expand its presence in North America and Europe to sell its high-end products, and reduce exports to China that currently account for almost 60% of foreign sales. LG Chem has been operating plants in Vietnam and Poland, and selling goods produced at its production facilities there. 

Lotte Chemical Corp., the second-largest petrochemicals firm also operates plants in Malaysia, the United States and other countries. In 2010, the company took over Titan Chemicals Corp. Bhd., a Malaysian petrochemical company, for 1.5 trillion won (US$1.2 billion won). Lotte Chemical is seeking to build a joint venture in the U.S., along with Axiall Corp., a leading U.S. chemicals firm. The company built a gas chemical complex in Uzbekistan last year. 

SK Global Chemical, a unit of the country’s top oil refiner SK Innovation Co., formed a partnership with Saudi Basic Industries Corp. (SABIC) last year, one of the world’s largest petrochemical groups, to start a global nexlene business. It already has a naphtha cracker center in China, established in a joint venture with China’s state-run refiner Sinopec Corp. in 2014. Early this year, the company said it would take over Dow Chemical Co.’s ethylene acrylic acid (EAA) business in a bid to diversify its business portfolio. The deal includes the purchase of EAA production facilities in the United States and Spain, and the related technology, it added. 

Source : Korea Bizwire

  More News  Post Your Comment

Previous News

Next News

{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha