MOSCOW (MRC) -- Lotte Chemical and Hanwha General Chemical have entered into an agreement, in which Hanwha will supply 450,000 t/y of purified terephthalic acid (PTA) to Lotte, effective July, as per Apic-online.
In order to meet its supply obligation, Hanwha will restart PTA production at its No. 2 plant in Ulsan, S. Korea, which has been idle. Hanwha owns Korea's "largest" PTA facility with a capacity of 2-million t/y, Lotte noted.
Lotte will transform its 600,000-t/y PTA facility in Ulsan to produce purified isophthalic acid (PIA), beginning this July. It has 520,000 t/y of PIA production capacity.
"This agreement is a case to expand profitability and business competitiveness through the voluntary cooperation of the two companies, who are competitors in the petrochemical industry, and it is meaningful in that they came together for the bigger goal of developing the domestic chemical industry," said Lotte.
As MRC reported earlier, on 4 March, 2020, Lotte Chemcial shut its naphtha cracker after an explosion at the plant in the southwestern city of Seosan, which injured 31 people. The explosion, which was triggered by a fire at a compressor in Lotte Chemical’s naphtha cracker at around 3 a.m. local time (1800 GMT), was soon contained and under control, the company said then in a statement. The cracker may resume production this October, although initially the restart was planned in a couple of weeks after the accident.
PTA is used to produce polyethylene terephthalate (PET), which is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.
According to MRC's ScanPlast report, May estimated PET consumption in Russia amounted to 70,170 tonnes, which corresponds to the level of consumption last year (70,450 tonnes). In total for the period January - May of this year, the estimated PET consumption in the Russian Federation amounted to 304,310 tonnes of material. This is 3% lower than the same indicator in 2019.
South Korean Lotte Chemical is a global petrochemical company, established in 1976. It produces low density polyethylene (LDPE), high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), functional resins, styrene monomer (SM), polyethylene terephthalate (PET), etc.