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
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