'Shaheen Project' to Be Announced on Nov. 17
S-Oil is planning to invest more than eight trillion won in Ulsan City. It is the largest investment project in the history of the oil refining and petrochemical industries of South Korea.
The purpose of the project is to build manufacturing facilities in order to produce 1.8 million tons of chemical products a year. Ethylene, polyethylene, and the like are likely to be produced there. The company is planning to complete the construction in 2026.
According to the company, its petrochemical arm’s contribution to its total sales will increase from 17 percent to 25 percent from 2021 to 2030 as a result of the investment. The company’s annual sales are expected to increase by US$1.53 billion as a result of the production activities. Most of the company’s sales have been derived from oil refining, but this lopsidedness is expected to be reduced.
Some of the investment is likely to be borrowed. Specifically, the ratio of borrowing is estimated at 20 percent to 50 percent. The company’s cashable assets totaled 1.4193 trillion won at the end of September and its operating profit for this year is estimated at 4.2475 trillion won. The financing is unlikely to be a burden given the figures and the fact that the investment is long-term.