HD Hyundai Oilbank employees inspect equipment at the refiner's Daesan plant in Seosan, South Chungcheong Province. (HD Hyundai Oilbank)
HD Hyundai Oilbank employees inspect equipment at the refiner's Daesan plant in Seosan, South Chungcheong Province. (HD Hyundai Oilbank)

HD Hyundai Oilbank said Wednesday it had launched a 10-year safety upgrade project to modernize aging infrastructure and ensure stable operations at its Daesan refinery in South Chungcheong Province.

Under the initiative, the Korean refiner will systematically upgrade key equipment at its petrochemical complex to improve overall operational efficiency and reliability. The project will run from 2025 through 2035 and will be implemented in three phases.

The first phase, spanning from 2025 to 2027, will focus on upgrading high-risk, large-scale fixed assets. The second phase from 2028 to 2031 will target system improvements and reliability reinforcement, while the final phase from 2032 to 2035 will involve the phased replacement of aging facilities.

Founded in 1989, the Daesan plant is relatively modern among domestic refineries. However, HD Hyundai Oilbank said a comprehensive overhaul became necessary as more than a decade has passed since its most recent major upgrade in 2011.

Through the project, the company aims to move away from passive, short-term repairs toward a preventive and systemic approach to facility management. It plans to establish medium- to long-term execution plans and conduct integrated reviews of organizational structures and equipment to identify and block risks.

To support the effort, HD Hyundai Oilbank has formed a task force across key departments, including production, facilities, design and inspection, to develop a detailed roadmap. The company has also invested about 30 billion won ($20 million) this year to replace aging equipment.

The company said the efforts have already produced visible results. As of 2025, the number of emergency shutdowns and warning signals has fallen by more than 50 percent from the previous year.

“Unlike general manufacturing, refineries operate 24 hours a day, making stable operations a core source of competitiveness,” an official from HD Hyundai Oilbank said. “We will continue to pursue preemptive upgrades on key facilities to enhance the reliability of our process operations.”


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