SK Innovation to expand petchem output in China
SEOUL (Reuters) — South Korea’s SK Innovation said on Tuesday it will invest $657 MM to boost production capacity at its petrochemical plants in China, jointly owned by China’s Sinopec Corp.
SK Innovation said in a statement its subsidiary SK Global Chemical will raise its total petrochemical production by 400,000 tpy to 3 MMtpy by 2020 at its petrochemical plants in China.
The investment is part of SK Innovation’s efforts to strengthen its partnership with the Chinese company and boost its business growth in China, the statement said.
The expansion plan includes increasing ethylene production by 300,000 tpy to 1.1 MMtpy, polyethylene output by 300,000 tpy to 900,000 tpy and polypropylene production 300,000 tpy to 700,000 tpy, according to the statement.
In 2013, SK Global Chemical invested a total of $2.92 B into Sinopec-SK Wuhan Petrochemical joint venture, in which SK Global Chemical has a 35% stake.
Currently SK Global Chemical runs petrochemical plants in China which produce a combined 2.2 MMtpy of ethylene and other petrochemicals.
Reporting by Jane Chung; Editing by Stephen Coates and Michael Perry
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