Lotte Chemical Corporation’s awarded contract for Monoethylene Glycol plant to Samsung Engineering

On December 17, two leading chemical giants, Axiall Corporation and Lotte Chemical Corporation have decided to set up an ethane based ethylene manufacturing plant in Lake Charles Louisiana, USA. Both the companies are planning to produce one million metric ton of ethylene annually. The construction of this plant is expected to begin in the second quarter of 2016 and the plant is expected to be operational by the beginning of 2019. Next to this ethylene plant, Lotte is introducing a Monoethylene glycol manufacturing plant. The Monoethylene Glycol plant will facilitate backward integration to Axiall’s vinyl business in coming future.

On December 18, Samsung Engineering Co., Ltd. has announced that it has been received an order of USD800 million from Lotte Chemical Corporation for the design and construction of its Monoethylene glycol plant (MEG). Under this contract the subsidiary of Samsung Engineering Co., Ltd. i.e. SEA Louisiana Construction LLC will act as engineering and procurement company and Chicago Bridge & Iron Company Inc. will provide construction services to the Lotte Chemical Corporation. The plant would be based on Lake Charles Louisiana, USA with cumulative capacity of 700 thousand metric tonnes per annum. Construction of ethylene plant will help both Axiall Corporation and Lotte Chemical to increase their capture in the chlor-alkali market. Further, construction of Monoethylene glycol plant will help Axiall to boost their vinyl business across the globe.

According to TechSci Research, “Samsung Engineering is one of the most recognized EPC (Engineering, Procurement & Construction) company for the ethylene glycol projects. Till date, company has supplied fourteen ethylene glycol plants to various clients across the globe. Expertise of Samsung Engineering in the design and construction of ethylene glycol plants will certainly help Lotte Chemical Corporation”.