SEOUL (Reuters) - GS Caltex [GSCAL.UL], South Korea’s second-biggest refiner, said on Wednesday it plans to invest about 2 trillion won ($1.84 billion) and build a new olefins plant to expand its business.
The company plans to start commercial operation of the olefins plant, or mixed feed cracker (MFC), in 2022, and the plant is expected to churn out 700,000 tonnes per year of ethylene and 500,000 tonnes per year of polyethylene, the refiner said in a statement.
The new plant will use naphtha and liquefied petroleum gas as its main stock, and be constructed in the southwestern city of Yeosu, where GS Caltex’s 790,000 barrels-per-day refinery is already located, according to the statement.
GS Caltex is equally owned by GS Holdings and U.S.-based Chevron Corp.
Reporting By Jane Chung; Editing by Sherry Jacob-Phillips