Honam considering Indonesia petchem plants

Honam considering Indonesia petchem plants

12:08 PM, 17th June 2011
Honam considering Indonesia petchem plants

  • Investment may cost up to $4.5 billion - market estimate
  • May build over 1 million tpy naphtha cracker - company source

SEOUL, SOUTH KOREA: Honam Petrochemical Corp said it was considering building a petrochemical complex in Indonesia, which market estimates indicate could cost up to 5 trillion Won ($ 4.49 billion).

Asia’s number 2 petrochemical maker reported to the stock market that it was considering building petrochemical plants in foreign countries including Indonesia under its mid- and long-term plans, although nothing had been finalised. Honam has a combined production capacity of 2.5 million tonnes per year (tpy) in South Korea and Malaysia, where it received takeover approval from shareholders of Malaysia’s largest petrochemicals maker Titan Chemicals Corp last December.

“This long-term investment consideration includes building an at least 1 million tpy naphtha cracker and downstream plants,” said a company source, who declined to be identified because of the sensitivity of the issue. The source quoted a market estimate putting the cost of construction at up to 5 trillion Won. He said through 2015 the company would first sort out financing issues for the project to enable a final decision, while construction would take about a year to complete. The completed complex would make Honam Petrochemical Asia’s number 1 petrochemicals maker, he said, adding that this investment consideration was based upon studies of market outlook and supply and demand balances.

Last month, South Korea’s Lotte Group, which owns 57.2 per cent of Honam Petrochemical, said it was considering investing as much as $ 5 billion to build a petrochemical plant in Indonesia.

© Reuters





Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Mitsui begins operations at some plants in Japan

TOKYO, JAPAN: Completing assessment of its plants following the Great Eastern Japan earthquake and tsunami on 11 March, 2011, Mitsui Chemicals has res ...

Read more
Huntsman signs licensing agreement with Yantai Wanhua in China

THE WOODLANDS, US: Huntsman Corporation has signed a licence agreement with Chinese chemicals manufacturer Yantai Wanhua Polyurethanes Co Ltd, for the ...

Read more
SABIC-Albemarle JV selects Samsung for its alkyls plant

JUBAIL, SAUDI ARABIA: Saudi Organometallic Chemicals Company (SOCC), a joint venture equally owned by SABIC affiliate, SPECIALTY CHEM (Saudi Specialty ...

Read more
LG Chem to invest $ 455 million in first polysilicon plant

SEOUL, SOUTH KOREA: LG Chem Ltd, South Korea’s biggest chemicals maker, said it plans to spend 491 billion won ($ 455 million) to build its firs ...

Read more
Endicott and Holly partner for biorefinery in Port Arthur, Texas

TEXAS, US: Endicott Biofuels, LLC and Holly Biofuels, a wholly-owned subsidiary of Holly Corporation, will jointly form Sabine Biofuels LLC to partner ...

Read more
BASF sells UK-based bisomer monomer business to GEO

LAFAYETTE, US/LUDWIGSHAFEN, GERMANY: GEO Specialty Chemicals Inc has entered into an agreement with BASF to acquire bisomer monomer business (hydroxy ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X