110 Million Ton/Year Ethylene Plant to Shut Down

According to South Korean media, the South Korean government announced on February 25 that it would provide 2.1 trillion won (approximately 10 billion yuan) in financial and tax support for the restructuring project of Lotte Chemical and HD Hyundai Chemical in the Dangjin Industrial Complex. This is the first restructuring project approved under South Korea's large-scale self-rescue plan for the petrochemical industry. According to the restructuring plan, Lotte Chemical will spin off its Dangsan plant in Chungcheongnam Province and merge it with HD Hyundai Chemical to establish a new entity. Both companies will inject 600 billion won each into the new company. Lotte Chemical's naphtha cracking facility in Dangjin will be shut down, with an ethylene production capacity of 1.1 million tons per year. Other facilities operated by the two companies that have redundant construction or are experiencing losses will also be suspended.