SK opens W1 trillion chemical factory
SK Global Chemical’s para-xylene (PX) and benzene plant in Ulsan
By Park Si-soo
SK Global Chemical and Japan’s JX Energy have jointly built a large-scale para-xylene (PX) and benzene plant in Ulsan to meet growing demand for the chemicals in China and other Asian countries.
The plant ㅡ built on a 50:50 investment basis with each spending 460 billion won ($435.9 million) ㅡ can produce up to 1 million tons of PX and 600,000 tons of benzene annually.
With the Ulsan Aromatic Corporation, SK Global Chemical has become the country’s biggest PX producer with an annual production capacity of 2.815 million tons. Including the Ulsan plant, the Seoul-based company has five PX plants at home and abroad.
PX is one of the core elements of synthetic fibers and PET bottles whose demand is rising in China, while benzene is used to make a variety of chemical products.
Nearly 95 percent of products from the Ulsan plant will be exported to China and other Asian countries, according to SK officials.
The new plant’s opening ceremony was held Thursday with nearly 300 executives from the two companies, including Koo Ja-young, vice chairman of SK Innovation; Yasushi Kimura, chairman of JX Energy; and Cha Hwa-youp, president of SK Global Chemical, in attendance.
“This joint project is clear evidence of a successful partnership between SK Global Chemical and JX Energy,” Koo said in a congratulatory speech.
Kimura echoed his view, saying the new plant will make a “great contribution” to the two companies’ sustainable growth. He called SK Group Chairman Chey Tae-won a “precious buddy,” expressing gratitude for his cooperation.
SK officials said the two companies have maintained a strong partnership since 2004. In 2011, JX was able to escape from its financial crisis caused by a powerful earthquake in Japan thanks to SK’s help, they said.