SK geo centric to build manufacturing plant in Ulsan with Saudi Arabia’s Sabic

Kim Doo-kyum, left, Mayor of Ulsan, and Sami Mohammed Al-Osaimi, SSNC chairman, pose for a photo during a signing ceremony at the Ulsan Metropolitan City Hall on Tuesday. [SK GEO CENTRIC]

SK geo centric is investing 200 billion won ($149 million) to build a chemical product manufacturing plant in Ulsan with Saudi Arabia’s Sabic, the local chemical company said Tuesday.

The investment will be made through Korea Nexlene Company. Korea Nexlene Company is a wholly-owned subsidiary of Sabic SK Nexlene Company (SSNC), a 50:50 joint venture between SK geo centric and Sabic established in 2015.

The latest 200-billion-won investment will be used for expanding the production capacity of Korea Nexlene Company’s Ulsan plant at a 1,322-square-meter site (14,229-square-feet). The manufacturing volume of Nexlene — a high-performing polyethylene first developed by SK geo centric — will be increased by 43 percent to 300,000 tons a year by July 2024, according to the company.

SK geo centric and Sabic invested a total of 605.1 billion won in Korea Nexlene Company so far to build a 65,100-square-meter production plant in Ulsan for Nexlene products, which are used in cars and solar panels.

Over 90 percent of Nexlene produced will be exported overseas, said SK geo centric.

SSNC and Ulsan Metropolitan City signed a memorandum of understanding on Tuesday at the Ulsan City Hall, with Ulsan Mayor Kim Doo-kyum and Sami Mohammed Al-Osaimi, SSNC chairman in attendance.

“We expect SSNC’s investment will contribute significantly to improving Ulsan’s standing through the development of core business and revitalization of the local economy,” said Kim, promising an active support for the project.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]