Aju Business Daily

SEOUL, Feb. 07 (Aju News) -- In an effort to diversify its business portfolio, GS Caltex, a major oil refinery in South Korea, disclosed a new investment plan to build an olefin plant at its production base in the southern port city of Yeosu that would produce 700,000 tons of ethylene and 500,000 tons of polyethylene annually.

Construction of the olefin plant, which will cost two trillion won (1.85 billion US dollars), will begin next year for completion in 2022, the company said,  adding the plant would use naphtha, liquefied petroleum gas and other raw materials.

GS Caltex, jointly owned by Chevron, an American energy group, and South Korea's GS Group, produces oil and petrochemical products. It provides about one-third of South Korea's oil needs. To meet growing global demand, the company has expanded production facilities.

In 2017, exports of South Korean petrochemical products were valued at $30.1 billion, up 33 percent from a year ago, according to the Korea Petroleum Association, which predicted brisk sales of petrochemical products this year on the back of strong global demand.