SK rules out Shenzhen for ABS

08 December 1997 00:00  [Source: ACN]

SK CORP (formerly Yukong) has dropped Shenzhen as one of the potential sites for its 100 000 tonne/year ABS project in China. Huizhou now looks the more likely site.

'The investment cost which the Shenzhen government has proposed is on the high side,' an SK senior executive said.

The South Korean chaebol has thus parted ways with its Chinese partners in Shenzhen - Zhong Cheng and Chinese General Chemical - and is looking for a new partner.

SK hopes to form a 50:50 joint venture. It declined to reveal the other possible sites it is studying. Huizhou has been favoured because its port is in better condition than Shenzhen's.

The collapse of talks has delayed the plant I startup from 1999 to 2000 (ACN 6 Oct, p45).

• IN SHENZHEN, SK is now awaiting China's green light for its proposed wholly owned US$1.5bn refinery and a 400 000 tonne/year cracker project. The company is optimistic that approval will be granted.

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