SK Global Chemical, Sinopec sign deal to build butanediol plant

SK Global Chemical, an affiliate of South Korea's SK Group, said on Feb. 26 that it signed a deal with Sinopec, China's state oil company, to establish a 50-50 joint venture in China to produce butanediol, a key material used to make synthetic fiber. The joint venture will be established around April.

The signing took place between Cha Hwa-yeob, CEO of SK Global Chemical, and Xu Zhengning, chief manager of SSVW (Sinopec Sichuan Vinylon Works), at Hilton Hotel in the southwestern Chinese city of Chongqing on Feb. 25. Other dignitaries who were present at the signing ceremony included Goo Ja-young, vice chairman of SK Innovation, and Huang Tianfu, chief manager of Sinopec.

Under the agreement, SK Global Chemical and Sinopec will invest about 680 billion won (3.8 billion yuan) to build a plant in Chongqing by 2015.

The plant is capable of producing 200,000 tons of butanediol per year, SK Global Chemical said. The plant, to be built in the Chongqing Changshou Economic and Technological Development Zone, will be the largest butanediol production factory in China.

By Josephine Liu Yan Yee

Park Sae-jin swatchsjp@ajunews.com