KOREA (SOUTH): Hyundai Oilbank & Lotte Chemical in JV for oil refining and synthetic materials

The venture, owned 60 % by Hyundai and 40 % by Lotte, will invest up to 1.2-trillion won, with production targeted to begin in the second half of 2016 at Hyundai's Daesan plant in South Chungcheong province.

Last year, the two companies signed a memorandum of understanding to build facilities for the production of 1-million t/y of mixed xylene and 1-million t/y of naphtha on the site of Hyundai's 390,000-b/d refinery.

At that time, it was explained that Hyundai Cosmo, which is a joint venture of Cosmo Oil and Hyundai Oilbank, and Lotte would each take a portion of the mixed xylene production, while Lotte will use the naphtha as feedstock for its petrochemical operations.

Source: Weekly "PetroChemical News", Durham, NC, USA; 27 Jan 2014
(Syed Rashid Ali, Karachi, Pakistan)