Hanwha Total Petrochemical, a South Korean and French joint venture, will invest $450 million to expand its Daesan refining and petrochemicals integrated platform in South Korea, Total announced on Wednesday.
The expansion project is set to be completed by mid-2019.
With the investment, the site’s ethylene capacity will increase by 30 percent to 1.4 million tons per year, the company said.
"The extension will significantly increase the site’s flexibility, enabling it to process competitively priced propane feedstock which is abundantly available, notably due to the shale gas revolution in the U.S.," Total said.
The additional ethylene production will meet local demand and supply the fast-growing Chinese market, which imports a significant part of its ethylene requirements, the company added.
Daesan refining and petrochemicals site generated a net result of nearly $1 billion in 2016.
“The investment reflects the strong partnership with Hanwha and will contribute to the growth of our refining and petrochemicals cash flows," said Bernard Pinatel, president of Total's Refining and Chemicals.
By Zeynep Beyza Kilic