South Korea's Lotte Chemical Corp plans to invest 253 billion won ($215.82 million) to increase the ethylene production capacity at its southwestern Yeosu plant by 2018.
This expansion plan will increase the ethylene production at its Yeosu plant by 200,000 tonnes per year (tpy) to 1.2 million tpy by 2018 and propylene production by 100,000 tonnes to 620,000 tpy. The petrochemical maker plans to start construction in the first half of 2017 and expects to boost its annual sales to about 500 billion won ($426.48 million) in 2019.
Lotte Chemical said it expects the expansion to raise its total ethylene production capacity to 4.5 million tpy by the end of 2018, together with its overseas plants including in Malaysia and Uzbekistan, helping the company become the world's seventh-largest petrochemical maker.
The company said the expanded plant will use propane gas to produce petrochemical products, shifting away from traditional petrochemical feedstock such as naphtha in order to diversify raw materials and stay cost competitive by using ethane from Uzbekistan natural gas and U.S. shale gas.
|Company Name||Lotte Chemical|
|Location||Yeosu, South Korea|
|Type||Increase In Production Capacity|
|Estimated Cost||$215 Million|