Lotte Chemical to Increase Ethylene Production Capacity in South Korea

South Korea: South Korea based Lotte Chemical Corporation is planning to invest in the expansion its production facility situated at the Southwestern Yeosu Petrochemical Complex, based in the South Korean province of Jeollanam-do by 2018. This expansion will increase production of ethylene by 200,000 tonnes per annum and production of propylene by 100,000 tonnes per annum. The expansion in the company’s capacity will also include the installation of gas turbine generators to increase the ability of the plant to generate its own electricity and reduce greenhouse gas emissions. The expansion project is expected to begin in the first half of 2017 which is expected to come under operation by 2018. This expansion will further help the company to increase their domestic production of ethylene in the country to 2.3 million tonnes per annum and 4.5 million tonnes per annum globally.

TechSci Research depicts that expansion of the company’s production capacity of ethylene would further help the company to address the growing demand for ethylene and propylene in South Korea.

According to the recently published report by TechSci Research, “Global Ethylene Market By End Use, By Region, Competition Forecast and Opportunities, 2011 – 2025”, global ethylene market is forecast to grow at a CAGR of 11.6%, during 2016-2025, in value terms, on account of growing packaging industry, increasing application of ethylene across automotive and building & construction sector. In 2011, global automobile production stood at 79.88 million units and reached 90.78 million units by 2015. With growth in automobile production, increase in demand for ethylene derivatives was witnessed from the automotive industry and a similar trend is expected to continue during 2016-2025. Moreover, development of coal to olefins technology as an alternative way for ethylene production, lifting up of the sanctions in Iran are expected to augment the ethylene production capacity, globally through 2025. Few of the major producers of ethylene across the world includes Saudi Arabia Basic Industries Corporation (SABIC), The Dow Chemical Company and ExxonMobil Corporation.