S-Oil Corp’s expanded paraxylene and benzene plant in full operation

31-May-11

S-Oil Corp’s expanded plant for paraxylene and benzene is now in full operation, at the No. 2 Aromatic Complex in Ulsan. The expansion has more than double S-Oil’s annual petrochemical production capacity to 1.6 mln tons of paraxylene and 300,000 tons of benzene. The two-year expansion project, completed in March, cost the refiner 1.3 trillion won (US$1.2 bln). “The plant is our new growth engine and future driving force that will help us diversify our business areas and establish a solid presence in the areas,” as per S-Oil chief executive Ahmed A. Subey. We’ll be able to gain a firm foothold in the petrochemical market as well as in the oil refining and lubricant oil markets where we’ve already secured global competitiveness.” Exporting around 60 percent of total output, S-Oil has been boosting its petrochemical business as a new revenue source over the last few years. S-Oil expects the new facilities to jack up exports by about US$3.2 bln and sales by about 3.5 trillion won each year, respectively. “With the start of operation of the No. 2 Aromatic Complex, we’ll not only become the most influential paraxylene supplier in the Asia-Pacific region, but we’ll also emerge as a petrochemical market leader by taking advantage of our geographical proximity to the center of global demand growth,” an S-Oil official said.