SOUTH KOREA: GS Caltex to build new facility for paraxylene

The Seoul-based company signed a memorandum of understanding (MOU) Tuesday (10 Apr 2012) with Japan's Showa-Shell and Taiyo Oil for a 1-million-metric-ton project of building PX facilities in its Yeosu complex.

When completed, the GS plant will crank out 2.35 million tons of PX a year to become the largest PX production line.

GS Caltex did not elaborate on the total investment amounts--stakes of the three participants and the exact timing of the construction--saying that such details have yet to be agreed upon.

Yet, the three-way partnership is expected to channel around 1 trillion won to break the ground later this year in consideration of similar schemes by their competitors.

GS Caltex expected that the new 1-million-ton project would add $1.7 billion to its annual export volume as the demand for PX has jumped of late thanks to its rich applications.

The two Japanese partners are predicted to be involved in the production of PX because they are suppliers of mixed xylene, the main materials needed to come up with PX.(Syed Rashid Ali, Karachi, Pakistan)