South Korean producers have for long been dependent on the Chinese market to absorb a large percentage of their output. So it is perhaps not surprising to read that SK Energy plans to move the headquarters of its chemicals division to China. It is also said to be looking at hiving off the chemicals business into a separate unit.
This report says that the relocation is likely to be completed by 2015.
The company's official line is that the move to China is one of many options being considered for globalisation of SK Energy and that nothing has been decided as yet. No deadline has been set for a decision.
But the possibility is quite high as China already a major market for the chemicals division.
Plus SK is pursuing a joint-venture 800,000 tonnes/year cracker and derivatives project with Sinopec at Wuhan.
Progress has been slow and the last reported completion date for the project was 2012-13. A company source says talks have started with the main contractor. But he was unable to give a firm start up date for the project.