05 August 2011 15:03 [Source: ICIS news]
TOKYO (ICIS)--Japanese refiner JX Nippon Oil & Energy plans to establish two joint venture companies with South Korea’s SK Innovation for the production of paraxylene (PX) and lube oil in South Korea, the company said in a statement on Friday.
JX Nippon Oil & Energy and SK Global Chemical, a subsidiary of SK Innovation, plan to set up a 50:50 joint venture and build a 1m tonne/year PX plant at SK Innovation’s Ulsan chemical complex, in Ulsan Metropolitan City, South Korea, the company said.
The plant, expected to cost won (W) 1,000bn ($941m), would be the world’s biggest PX facility, and is scheduled to start commercial production in 2014.
JX would supply PX feedstock for the new plant from its refineries in Japan.
JX also plans to build a lubricant base oil facility at the same site for W350bn. The plant will be built jointly with SK Lubricants, another subsidiary of SK Innovation, the company added.
This facility would have a capacity of 1.35m kilolitres/year, and is expected to come on stream around July 2012, JX said.
JX will have a 28% stake and SK Lubricants will have a 72% stake in the venture, according to JX.
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