Lotte Chemical, U.S. company in talks to build ethane plantLotte Chemical, an affiliate of Korea’s No. 5 conglomerate, Lotte, said yesterday it signed a tentative agreement with the U.S.-based Axicall to build a 1 million metric ton ethane cracker plant in Louisiana.
This is the first time that a local company will build a shale gas-based ethane cracker plant. Lotte and Axicall will jointly own the plant, which is expected to begin commercial production of ethylene in 2018. Lotte’s current production of ethylene is 2.8 million metric tons a year.
Lotte said it will also pursue building its own monoethylene glycol plant near the potential cracker plant.
The company said that the deal gives it a springboard from which to do business in the North American market.