01 October 2002 03:06 [Source: ICIS news]
SINGAPORE (CNI)--LG Petrochemical plans to invest Won200bn ($162m/Euro164m) in a 150 000 tonne/year phenol and 120 000 tonne/year bisphenol-A (BPA) plant at Yeochun, South Korea, a company spokesman told CNI on Tuesday.
LG plans to start constructing the new facility late next year. The plant is expected onstream by early 2005.
The South Korean company has licensed phenol/BPA technology from two US chemical firms, Kellogg Brown & Root and Resolution Performance Products Inc.
LG expects an annual turnover of at least Won205bn from the new plant by the end of 2005. It believes that the global BPA market, fuelled by increasing demand for polycarbonates, has recorded strong growth during the last decade with growth rates of 10% annually and above.
Propylene and benzene feedstock for the BPA/phenol plant will be supplied from LG’s cracker centre, also at Yeochun.
Most of the BPA and phenol produced by the new plant is to be consumed by LG Dow Polycarbonate Ltd, Korea's largest polycarbonate manufacturer, the company said. The remainder of the output, amounting to 50 000 tonne/year of phenol and 60 000 tonne/year of acetone, will be available for sale to other companies, both in South Korea and abroad, it added.
BPA is a key industrial chemical used to make polycarbonate plastic and other products.
Polycarbonate is used in a variety of applications such as the fast growing optical media industry, as well as electrical and electronic, construction, and automotive and packaging applications.
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