Denial of Acquisition
SK Global Chemical CEO Kim Hyung-gun denied recent rumors on its plan to acquire a stake in China’s Shanghai SECCO, saying, “I know nothing about it.”
During a meeting with CEOs of domestic petrochemicals companies at the Seoul Government Complex on September, chaired by the Trade, Industry and Energy Minister, Kim told reporters, “I know nothing about the takeover of Chinese company.” In regard to rumors that SK Global Chemical is seeking to acquire China’s Shanghai SECCO stakes, SK Innovation said on June 10, “It is considering a variety of business opportunities for future growth including taking over Chinese companies.”
SECCO is now operating China’s largest naphtha cracking center (NCC). It is a US$2.7 billion (3.14 trillion won) joint venture between British oil company BP (50%), state-owned China Petroleum & Chemical Corp (Sinopec, 30%) and its subsidiary, Shanghai Petroleum Company (20%). It is producing ethylene, propylene, polypropylene and butadiene at its eight plants in the Shanghai Chemical Industrial Park.
Regarding to an inquiry about restructuring plans of the petrochemical industry, he said, “Businesses talked a lot about difficulties and we expect the government to actively help us.”