Korea's LG Chem cites ‘global recession’ in India project pull-out

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.


By: Pearl Bantillo
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly