MOSCOW (MRC) -- Hyundai Oilbank and Lotte Chemical Corp. have established Hyundai Chemical as a new venture in the "oil refining and synthetic fiber materials business," reported GV with reference to the Korea Economic Daily.
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.
As MRC informed earlier, in November 2013, Eni SpA chemical subsidiary Versalis established a 50-50 joint venture with South Korean petrochemical company Lotte Chemical to target the Asian elastomers market. The joint venture is called Lotte Versalis Elastomers Co., and will be headquartered in Yeosu, South Korea. Production capaciy for the elastomers unit includes butadiene and ethylene propylene-derived products for a total capacity of about 200,000 metric tpa.
In early 2013, a major South Korean pertochemical and polymer producer, Honam Petrochemical, and one of the largest South Korean PET and PTA producer, KP Chemical, decided to merge into a new company with a new name Lotte Chemical Corporation. The newly formed company believes that this move will strengthen its position both in domestic and international markets and is in a line with Lotte Chemical's strategy to become a leading global company.