Daelim seeks joint investment with Thai company to build petrochemical complex in U.S.

Lim Chang-won Reporter Posted : 2018-01-30 09:03 Updated : 2018-01-30 09:03
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[Aju News DB]

SEOUL, Jan. 30 (Aju News) -- Daelim Industrial, an engineering, construction and petrochemical company in South Korea, said Tuesday it would team up with Thailand's PTT Global Chemical (PTTGC) to build a petrochemical complex in the United States for the production of ethylene and polyethylene.

Daelim said its board of directors has approved the investment agreement with the U.S. subsidiary of PTTGC, Thailand's largest petrochemical and refining company, to open the petrochemical complex in Ohio. The two companies will jointly operate an ethane cracking plant (ECC), which decomposes ethane to produce ethylene, and a polyethylene plant.

Final decisions on the size of investment and stake will be made by the end of the year, Daelim said, adding the two companies aim to produce about 1.5 million tons of ethylene and polyethylene annually.

The project would contribute to Daelim's stable sales and profits in the petrochemical sector as it can secure a petrochemical production base in the American market. Daelim has a naphtha-based ethylene plant at home. Using the U.S. plant, Daelim hopes to bypass entry barriers in Europe, North America and South America.