SK Advanced ready to start 1 trillion won projectSK Advanced, a joint venture company established by SK Gas and state-run oil companies from Kuwait and Saudi Arabia, is set to begin work on its 1 trillion won ($843.6 billion) propane dehydrogenation (PDH) project in Korea.
The project is expected to produce some 600,000 tons of propylene a year and will export 75 percent of the total, or 450,000 tons, to China. And the project is estimated to create some 500 billion won worth of economic benefits through reduced imports and expanded exports.
The project is expected to create some 100 jobs when it begins operation, according to the Ministry of Trade, Industry and Energy.
“SK Advanced is a great example of a successful cooperation in investment between the three countries by taking advantages of each other’s’ strengths,” trade minister Joo Hyung-hwan said at a ceremony in Ulsan on Monday.
Senior officials from SK Gas, Kuwait’s Petrochemicals Industries Company (PIC) and Saudi Arabia’s Advanced Petrochemical Company (APC) attended the ceremony which officially launched the project.
Some 250 people, including lawmaker Park Maeng-woo from Ulsan, Ulsan Metropolitan City Mayor Kim Gi-hyeon and vice chairman of SK Chemicals Choi Chang-won, attended the event.
“Memorandums of understanding that were signed between SK Gas and Kuwait’s PIC while President Park Geun-hye was visiting the Middle East earlier this year played a significant role for the project,” Joo pointed out.
Joo discussed the benefits of investing in Korea with foreign investors at the event and said he will do his best to tighten economic cooperation between the three countries.
Meanwhile, SK Gas attracted 80 billion won worth of investments from PIC through the MOU signed earlier this year.
SK Gas said the joint project will lead to the transfer of knowledge and technology. PDH is a technique to produce polymer-grade propylene from propane as the market demand for propylene is growing fast.
BY KIM YOUNG-NAM [firstname.lastname@example.org]