South Korean petrochemical companies plan to jointly invest 3.5 trillion won ($3.59 billion) until 2009 to enhance their global competitiveness and cope with high oil prices and growing global demand for petrochemicals. The ongoing efforts by China to develop infrastructure in this sector, thereby leading to cheaper petrochemicals is also a reason compelling many companies in South Korea to improve their manufacturing bases so they can make more high-quality products.
Honam Petrochemical Corp. plans to invest 715 billion won on production facilities by 2009, Lotte Daesan Petrochemical Corp. plans to invest 670 billion won by 2008, and LG Chem plans to invest a combined 323 billion won in the coming years. Honam, Hanwha Chemical Corp. and SK Corp. have committed themselves to improve efficiency by pushing forward the "combinat projects". The combinats, planned for Ulsan and Yeosu, aim to integrate oil refineries with petrochemical plants so better efficiency can be achieved in production, while energy consumption is cut.
24-Mar-06 
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