Hyundai Oilbank (CEO Kwon Oh-gap) will build a large-sized BTX Hyundai Oilbank Dasan Plant capable of producing high-value-added petrochemical materials such as benzene and p-xylene in partnership with Cosmo Oil of Japan. The company held a ground-breaking ceremony for the second BTX Complex, which was attended by CEO Kwon, Kimura Yaichi, president of Cosmo Oil, Yu Sang-gon, mayor of Seosan and Kim Hwan-seong, chairman of Seosan City Council.
The second BTX Complex, situated on an area measuring 85,000 square meters, will be able to produce up to one million tons of benzene and p-xylene a year. The construction project will cost 600 billion won and require 600,000 man-days. The complex is scheduled to be finished in June 2013. The BTX facilities produce toluene and p-xylene, materials used for plastic containers and synthetic resins, and benzene, a material used in detergents and additives to raise octane numbers of gasoline.
P-xylene is a material used in everyday products, such as plastic containers, polyester and synthetic resins. Hyundai Oilbank produces 380,000 tons of p-xylene and 120,000 tons of benzene a year in conjunction with HC Petrochem, which Hyun-dai Oilbank founded with Cosmo Oil in 2009.
When the new complex is completed, its annual production capacity will reach 1.5 million tons, approximately three times the current volume. The second BTX complex will use mixed xuylene (MX) from Cosmo Oil as the main material, meaning changes in international material prices will not significantly impact operations at the new complex.
It is expected that the two companies will be able to enjoy synergies brought about by cooperative marketing. In particular, Hyundai Oilbank expects an increase of approximately one trillion win in exports to China, Taiwan, and Europe through the selling of bezene and p-xylene from the new facilities.
“If this project is successful, our company will have a stronger business structure with highly advanced oil refinery facilities and facilities capable of producing high-value-added petrochemical products,” said President Kwon, adding, “We will contribute to strengthening the national competitiveness of Korea by exporting products from the new BTX plant.”
Hyundai Oilbank is also expanding its social contribution activities in the aim of creating a better world. At present, Yeonpyeong Island has one elementary school, one middle school and one high school. The cafeteria in the elementary school is currently used for students of all three schools, with a small retailer supplying rice and side dishes to students.
However, since the North Korean attack on Yeonpyeong Island at the end of last year, the retailer has ceased supplies due to problems with employment. As a result, Yeonpyeong Island has an unstable supply of food and is need of a bigger warehouse that can store food for 70 to 80 students for at least two days.
Hyundai Oilbank told the three schools that it would provide various facilities, such as large refrigerators. However, at the time, strong sea waves prevented employees of Hyundai Oilbank from visiting the island. Finally, at the end of last year, Hyundai Oilbank employees and the leader of its labor union were able to visit the schools. On June 27, the company sent food storage facilities, including a large refrigerator and Kimchi refrigerator, to the island aboard the Miraeho ship.
“I worried about the storage of food as summer was nearing, but students will now be able to maintain good health and enjoy fresh food thanks to the storage facilities provided by Hyundai Oilbank,” said school principal Kim Yeong-se.
Meanwhile, Hyundai Oilbank delivered 36 million won to residents on Yeonpyeong Island who suffered from the North Korean attack on the island last year. Employees of Hyundai Oilbank raised the money by working at gas stations. CEO Kwon contributed 10 million won to the bereaved families of soldiers killed during the attack.
Hyundai Oilbank is planning to hold various exchange activities with schools on Yeonpyeong Island, such as inviting students to its oil refinery plant in Daesan, South Chungcheong Province during the vacation.