By IN-SOO NAM
SEOUL -- SK Global Chemical said it has signed a final
agreement with Chinese state refiner Sinopec for a $2.9 billion
petrochemical joint venture.
Production at the plant in Wuhan, central China, will start
in the second half of the year, SK said in a statement. The
plant will have annual capacity of about 2.5 million tons of petrochemical products, including
ethylene, it said.
An initial agreement on the project was signed in December
SK Global Chemical will own 35% of the project, the largest petrochemical joint venture between
the two countries, while Sinopec holds the remaining stake, it
The deal comes during South Korean President Park Geun-hye's
four day visit to China this week, which was accompanied by the
largest-ever South Korean business delegation to China of 71
corporate bosses, including SK Innovation Vice Chairman Koo
Ethylene is widely used as a feed stock material to produce
various petrochemical products, including
polyethylene and polyvinyl chloride used in plastics.
Dow Jones Newswires