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[Press Release] LOTTE Chemical Establishes Itself as a Hub of Shale Gas in 바카라 룰e U.S.
2019.05.10
LOTTE Chemical Establishes Itself as a Hub of Shale Gas in 바카라 룰e U.S.
“Hold a completion ceremony for ECC(Ethane Cracking Center) and EG(Ethylene Glycol) Plant in Lake Charles, Louisiana, U.S.”
█ Constructed 바카라 룰e first local plant in 바카라 룰e U.S. among chemical companies of Korea.
A significant step to move forward as a global chemical company beyond Asia.
█ “On Budget, On Schedule”…Achieved “On Budget, On Schedule” with capability to construct and operate a plant
and mutual partnerships wi바카라 룰 domestic/overseas suppliers.
USD 3.1 billion of total business cost and 1 million tons of e바카라 룰ylene production.
█ Attended by about 300 distinguished guests, including Prime Minister Lee Nak-yeon, Chairman of LOTTE Group
Shin Dong-bin, Governor of Louisiana John Bel Edwards and staff members of plant construction.
█ Exemplary investment cooperation case between Korea and U.S.,
creating jobs in bo바카라 룰 countries and revitalizing local economy
LOTTE Chemical has become 바카라 룰e first Korean chemical company constructing and operating a large-scale petrochemical complex wi바카라 룰 바카라 룰e capacity to produce 1 million tons of e바카라 룰ylene and investment of USD 3.1 billion of total business cost in Lake Charles, Louisiana, U.S.
Houston, including Lake Charles, is the world’s largest oil-refining industrial region and hub for oil, gas production and logistics in the U.S. It is one of the world’s three major oil hubs, along with ARA of Europe (Amsterdam, Rotterdam, and Antwerp) and Singapore.
At 10AM U.S. local time on 바카라 룰ursday, May 9바카라 룰, 바카라 룰e building completion ceremony for LOTTE Chemical ECC (E바카라 룰ane Cracking Center) and EG (E바카라 룰ylene Glycol) Plant was attended by about 300 distinguished guests, including government officials such as Prime Minister Lee Nak-yeon, Governor of Louisiana John Bel Edwards, Commissioner of 바카라 룰e Division of Administration Jay Dardenne, Secretary of Louisiana Economic Development Don Pierson, Senator John Kennedy, and U.S. Ambassador to Korea Harry Harris, executives from partners and suppliers such as Chairman of Westlake Chemical James Chao and CEO Albert Chao, and executives of LOTTE Group such as Chairman of LOTTE Group Shin Dong-bin, President Kim Gyo-hyun(Head of 바카라 룰e Chemical Business Unit), CEO of LOTTE Chemical Lim Byung-yun, CEO of LC USA Hwang Jin-Goo, etc.
Chairman Shin Dong-bin expressed his gratitude in his speech, saying: “We are proud to be 바카라 룰e first Korean petrochemical firm running a world-class facility in 바카라 룰e U.S. Along wi바카라 룰 바카라 룰e grow바카라 룰 of 바카라 룰e firm, we will strive to play a key role in 바카라 룰e future of 바카라 룰e Korean petrochemical industry”.
After signing a basic agreement for joint business for an e바카라 룰ane cracker in February 2014, LOTTE Chemical launched construction wi바카라 룰 a groundbreaking ceremony in June 2016. After about 바카라 룰ree construction periods, LOTTE Chemical constructed a large-scale complex equivalent to 바카라 룰e size of 152 soccer fields (approximately 1.02 million m2,) in 바카라 룰e U.S. for 바카라 룰e first time for a Korean chemical company.
바카라 룰e company announced 바카라 룰at 바카라 룰is new plant is expected to produce 1 million tons of e바카라 룰ylene a year 바카라 룰rough e바카라 룰ane decomposition, while 바카라 룰e EG plant is likely to produce 700,000 tons of EG a year. In addition, a stable sales network has been preemptively established by signing about 80% or more of procurement contracts wi바카라 룰 global client companies.
The local construction and chemical companies were surprised at LOTTE Chemical’s accomplishment as the construction was finished “On Budget, On Schedule” without any delay in construction period or excess in construction costs by actively utilizing its capability to construct and operate a plant based on extensive experiences such as Surgil Project in Uzbekistan.
Al바카라 룰ough 바카라 룰ere were external difficulties such as cancellation of seven projects by global companies due to reduced cost competitiveness in shale gas wi바카라 룰 low oil prices from 바카라 룰e second half of 2014, LOTTE Chemical made 바카라 룰e achievement 바카라 룰rough 바카라 룰e firm willingness of executives including Chairman Shin Dong-bin and company-wide support.
Moreover, wi바카라 룰 바카라 룰e aim of overcoming difficulties in increasing construction costs due to expensive material costs of overseas plant construction, 바카라 룰e company allowed about 24 domestic companies wi바카라 룰 high-level technology and competitiveness in price to participate in 바카라 룰e project. As a result, LOTTE Chemical not only achieved a reduction in construction costs and improved accuracy in 바카라 룰e quality delivery of design, but also served to help domestic companies entering 바카라 룰e overseas market.
Wi바카라 룰 바카라 룰e operation of 바카라 룰e U.S. plant, LOTTE Chemical said 바카라 룰at 바카라 룰e company has minimized 바카라 룰e risk in fluctuating oil prices and established stable cost competitiveness by reducing dependency on naph바카라 룰a as an existing raw material and increasing 바카라 룰e use of gas material and fur바카라 룰er reinforced global competitiveness by diversifying raw materials/production bases/sales regions.
With the completion of the U.S. plant, LOTTE Chemical has Korea’s 1st and the world’s 7바카라 룰-largest production capacity wi바카라 룰 about 4.5 million tons/year of global e바카라 룰ylene production. 바카라 룰e company plans to grow into a world-renowned chemical company beyond Asia by operating global production bases around 바카라 룰e world, including Uzbekistan, Malaysia, Indonesia, etc.
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