Hanwha Total Petrochemical to invest $300m in South Korean facility
Hanwha Total Petrochemical is set to invest more than $300m to expand its integrated refining and petrochemicals platform in Daesan, South Korea.
The company is a 50/50 joint venture between South Korean conglomerate Hanwha and French energy and chemical company Total.
The investment will enable the company to boost the site’s polyethylene capacity by more than 50% to 1.1 million tonnes per annum by the end of 2019.
Hanwha Total Petrochemical noted that the new project will add to the steam cracker expansion and flexibilisation project announced this year that will allow it to process low-cost propane feedstock.
Following the expansion, the facility will be able to capture margin along the full ethylene-polyethylene value chain.
Daesan is Total’s sixth integrated platform and features a condensate splitter, steam cracker and polymers, styrene and aromatics. The facility generated a net result of nearly $1bn last year.
Hanwha Total Petrochemical will install Advanced Double Loop technology licensed by Total and Chevron Phillips Chemical Company, which will enable the production of a range of high-end specialty polyethylenes.
With the additionally produced polyethylene, the company will be in a position to meet the local South Korean demand and serve the growing Chinese market as well.
Total Refining & Chemicals president Bernard Pinatel said: “After the expansion of the steam cracker announced earlier this year, this project will allow us to capture margins across the full value chain at this giant integrated platform.
“We will provide the fast-growing Asian market with high-added-value polymers by leveraging our differentiating technology.”