11 April 2013 09:24 [Source: ICIS news]
SINGAPORE (ICIS)--South Korea’s S-Oil has started upgrading works at its 600,000 tonne/year bitumen plant at Onsan this month and expects to boost the unit’s capacity by 67% by October, market sources said on Thursday.
Company officials declined to comment on the issue.
Most of the bitumen output from the upgraded 1m tonne/year facility will be exported, with S-Oil planning to expand its target markets to include Japan and southeast Asia, market sources said.
The company’s supply to its main market – China – will also increase after the expansion and most of the supply will be contract cargoes, traders said.
S-Oil will mainly sell its bitumen to China via its Shanghai branch, which started bitumen trading late last year, two Chinese importers said.
S-Oil supplied around 360,000 tonnes of bitumen to China in 2012, most of which were spot cargoes.
The company is the lasgest overseas bitumen supplier to China, after fellow South Korean producer SK.
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