“PP and PO production using the most advanced and reliable technologies will be a cornerstone for S-Oil’s long-term strategy of becoming a combined refining and petrochemical firm,” said a company official. “The technology license agreement with Sumitomo Chemical will also be a solid foundation for collaboration between the two companies.”

PP and PO are used as raw materials for producing synthetic resins and insulation materials and are steadily growing in demand across the world. Korea has been depending on foreign imports of PO in particular due to limited domestic supply from a single manufacturer.

“S-Oil’s entry in the PO business will create a healthy competitive environment in the domestic market and promote Korean firms that use PO to invest, as domestic supply will replace foreign imports and improve trade balance,” said an industry source.

By Sang Youn-joo (sangyj@heraldcorp.com)