Hanwha Total Petrochemical, a 50/50 joint venture between Hanwha and Total, will invest more than US$300 million to expand its integrated refining and petrochemicals platform located in Daesan, South Korea.
The investment will increase the site’s polyethylene capacity by more than 50 per cent to 1.1 million tons per year by the end of 2019.
This project complements the steam cracker expansion and flexibilisation project announced earlier this year, that will allow the plant to process low-cost propane feedstock. Thus, it will allow the facility to capture margin along the full ethylene-polyethylene value chain.
“After the expansion of the steam cracker announced earlier this year, this project will allow us to capture margins across the full value chain at this giant integrated platform”, said BernardPinatel, president Refining & Chemicals of Total.
Hanwha Total Petrochemical will use the Advanced Double Loop technology licensed by Total and Chevron Phillips Chemical Company, which will enable the production of a wide range of high-end specialty polyethylenes.
The additional production of polyethylene, the most widely used polymer, will supply the local South Korean demand and also the fast-growing Chinese market.
BernardPinatel added: “We will provide the fast-growing Asian market with high-added-value polymers by leveraging our differentiating technology.”
Daesan is one of Total’s six world-class integrated platforms and in statement said it was a strategic asset for both shareholders.