Hyundai Chemical is a joint corporation that was established in 2014 by Hyundai Oilbank and Lotte Chemical with a financial injection of 1.2 trillion won ($1 billion).

MX is a base material for benzene, toluene and xylene, which are used for producing polyester fiber, PET and gasoline additive.

The new plant will refine 130,000 barrels of condensate per day, and produce 1.2 million tons of MX and 1 million tons of light naphtha every year. It will also produce 50,000 barrels of petrochemicals per day, the company said.

By supplying the MX to Lotte Chemical and Hyundai Oilbank’s subsidiary Hyundai Cosmo Petrochemical, the company projected that it would replace annual imports of the base material worth 1 trillion won, it added.

The export of petrochemicals is also expected to draw 1.5 trillion won of annual sales.

With the new plant, Hyundai Oilbank’s daily refining capacity has extended from 390,000 barrels to 520,000 barrels, the company said. 

By Lee Hyun-jeong (rene@heraldcorp.com)