SKC signs billion-plus dollar deal with Kuwaiti company

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SKC signs billion-plus dollar deal with Kuwaiti company

Published: 08 Aug. 2019, 20:23

SKC said Thursday it signed an agreement with Petrochemical Industries Company (PIC) from Kuwait to launch a joint 1.45 trillion won ($1.2 billion) venture.

The chemical affiliate of the SK Group will separate its chemical business and sell 49 percent to state-run Kuwait Petroleum Corporation’s (KPC) wholly-owned subsidiary.

The joint venture will produce propylene oxide (PO) and propylene glycol. SKC and PIC are planning to officially launch the joint venture by first quarter of next year.

The SK affiliate said the joint venture will help the company get closer to its ultimate goal of being capable of producing 1 million tons of PO per year by 2025. The joint venture is also a step toward fulfilling KPC’s 2040 goals.

By Ko Jun-tae