The investment is part of the company’s goal to become a leading energy and chemical company under its “Vision 2025.”
The steam cracker will produce 1.5 million tons of ethylene annually and basic petrochemicals using naphtha, giving the company a competitive advantage in feedstock sourcing and cost competitiveness. Olefin downstream facilities will produce increased volumes of high value petrochemical products, including polypropylene.
“S-Oil is confident that the phase II project will put the company in a better position to navigate through rapid changes in business environment due to shale oil and electric vehicles, among others, and help S-Oil to step closer to achieve Vision 2025” the company said in a statement.
For the phase II project, the company has purchased 400,000 square meters of land to build a mega plant from Heavy Industries near its Onsan refinery.
Backed by the phase II project, following the phase I residue upgrading complex and olefin downstream complex projects, S-Oil is also seeking to diversify its business portfolio, restore competitiveness, stabilize its profit model and ultimately bolster sustainable growth, the company said.
It added the project will significantly contribute to the economy, creating some 400 regular jobs and increase exports.
By Kim Bo-gyung (email@example.com)