Total SA (FP.FR) said Monday that its Hanwha Total Petrochemical 50/50 joint venture with Hanwha Group will invest $300 million to expand its integrated refining and petrochemicals platform in Daesan, South Korea.
The objective of the investment is to expand the joint venture's polymer production, Total said. With it, the site's polyethylene capacity will increase by more than 50% to 1.1 million tons a year by the end of 2019.
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This additional production of polyethylene, the most widely used polymer, will fuel demand both in South Korea and China.
"After the expansion of the steam cracker announced earlier this year, this project will allow us to capture margins across the full value chain at this giant integrated platform", said Bernard Pinatel, Total's president of refining and chemicals.
Hanwha Total Petrochemical will use the advanced double loop technology licensed by Total and Chevron Phillips Chemical Company, it said, which will enable the production of a wide range of high-end specialty polyethylenes.
Daesan is one of Total's integrated platforms and a strategic asset for both shareholders, the company said. The site, which is comprised of a flexible condensate splitter, a competitive steam cracker and polymers, styrene and aromatics, generated a net result of nearly $1 billion in 2016.
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(END) Dow Jones Newswires
December 11, 2017 02:50 ET (07:50 GMT)