SK Global Chemical began operating a polyethylene plant in Ulsan, Wednesday, which was built in cooperation with Saudi Arabian chemical company SABIC.

The plant, owned by the 50-50 joint venture, named SABIC SK Nexlene, will produce 230,000 tons of high performance polyethylene a year, posing a challenge to Dow Chemical, ExxonMobil and Mitsui Chemicals, which have dominated the market for many years.

SABIC SK Nexlene plans to build another polyethylene plant in Saudi Arabia in a few years to expand its annual production to 1 million tons.

Polyethylene is used for a wide range of products including industrial packaging films, interior materials for automobiles and shoes, and cable sheathing, among others, according to SK officials. The plant was built solely with technology developed by SK, they said.

"We have taken the first step in a journey toward becoming the world's leading polyethylene maker," SK Group Chairman Chey Tae-won said in a commemorative speech. "We will expand the production to more than 1 million tons to lead the market. In addition, the two companies, SK and SABIC, will jointly explore new business opportunities to maximize the benefits of the partnership."

He said the partnership of the two companies will help bolster the relationship between Korea and Saudi Arabia.

SK is the only non-Saudi Arabian chemical company that has formed a joint company with SABIC.

SABIC Chairman Prince Saud bin Abdullah bin Thenayan Al-Saud also praised the plant's operation, calling it "a key milestone" in the chemical giant's mission of developing groundbreaking technologies.

"For SABIC, today's events represent a key milestone in our goal to develop groundbreaking technologies and innovations in partnership with global industry leaders like SK," he said.

Nearly 400 VIPs attended the opening ceremony, including Trade, Industry and Energy Minister Yoon Sang-jick, SABIC Vice Chairman Yousef A. Al-Benyan and Ulsan Mayor Kim Gi-hyeon.

SK and SABIC reached an agreement to establish the joint company in July. The joint venture was first proposed by SK Group Chairman Chey during his meeting with Mohamed Al-Mady, then SABIC's vice chairman, in March 2011.

 

koreatimes.co.kr

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