08 November 2004 06:53 [Source: ICIS news]
SINGAPORE (CNI)--Hyundai Petrochemical is to be divided into three separate companies between its acquiring companies, LG Chem and Honam Petrochemicals, with each operating one of its two Daesan-based complexes while jointly holding stakes in a separate utilities company, CNI was told on Monday.
A spokesman for LG Chem said that his company would own LG Daesan Petrochemical, which would operate one complex. Honam would own Lotte Daesan Petrochemical, which is to operate the second complex. LG Chem and Honam would both hold stakes in Seetec, the utilities firm that would service the two complexes.
He said full details of the final asset split were still being negotiated and would be revealed at a later time.
CNI's sister publication Asian Chemical News earlier reported, citing a high-placed company source, that Honam would take complex No 2 at Daesan, which includes a 600 000 tonne/year cracker and 140 000 tonne/year low-density polyethylene (ldPE) and 160 000 tonne/year high-density PE/linear-low density PE units, the source added.?xml:namespace>
The No 2 complex also includes a 240 000 tonne/year styrene plant, a 250 000 tonne/year polypropylene (PP) facility, and a 250 000 tonne/year ethylene glycol/ethylene oxide (EG/EO) unit. Honam does not currently produce ldPE, lldPE, or styrene.
Meanwhile, LG Chem, would take the No 1 complex, which includes a 450 000 tonne/year cracker, a 125 000 tonne/year EO/EG plant, a 250 000 tonne/year PP plant, a 135 000 tonne/year ldPE unit, an 80 000 tonne/year lldPE facility, a 140 000 tonne/year hdPE unit and a 150 000 tonne/year styrene plant.
Creditors of Hyundai Petrochemical signed a contract worth Won1.74trn ($1.50bn/Euro1.23bn) with LG Chem and Honam Petrochemical for Hyundai assets in January 2003.
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