Hanwha joint venture completes expansion

Hanwha Total Petrochemical has completed the expansion of its ethylene and propylene producing facility in South Chungcheong and started commercial operations, the company said Tuesday.

With the expansion in its naphtha cracking center, the company’s Daesan plant in South Chungcheong can produce an additional 310,000 tons of ethylene and 130,000 tons of propylene per year. The company invested 540 billion won ($453.8 million) into the facility extension that took roughly 29 months since April 2017.

Ethylene and propylene are basic materials used to make petrochemical products like plastic.

Hanwha Total Petrochemical said it is expecting an increase of roughly 590 billion won in annual revenue through the expansion. It now has the capacity to produce a total of 1.4 million tons of ethylene and 1.06 million tons of propylene.

While there is increasing competition in the petrochemical market due to facility expansions by North American and Chinese competitors, as well as the sluggish economy, Hanwha Total Petrochemical said it will enhance cost competitiveness in its products through the expansion.

The company has a series of additional expansion plans in progress.

By the end of this year, it plans to add the capacity to produce a further 400,000 tons of polyethylene. By early 2021, it plans to add the capacity to produce a further 150,000 tons of ethylene, 40,000 tons of propylene and 400,000 tons of polypropylene.

Hanwha Total Petrochemical is a 50-50 joint venture between Hanwha Group and French energy giant Total.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]