25 September 2013 06:41 [Source: ICIS news]
SINGAPORE (ICIS)--LG Chem decided to withdraw from a joint venture (JV) petrochemical project in India with Bharat Petroleum Corp Ltd (BPCL) because of the weakened state of the global economy, a spokesperson of the South Korean firm said on Wednesday.
“It is not a sudden decision,” the spokesperson said in an e-mail to ICIS.
“We have thought about the business thoroughly and have decided to completely withdraw [from the project] due to the ongoing global economic recession,” he said.
LG Chem and BPCL had agreed in July 2012 to build a fluid catalytic cracker in Kochi that will produce 500,000 tonnes/year of propylene.
The downstream project is tied to the capacity expansion of BPCL’s refinery at the site.
BPCL is keen to proceed with the downstream project without LG Chem.
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