South Korea's major petrochemical companies have begun a series of plant demolition procedures

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Major petrochemical companies in South Korea, which have been shut down due to oversupply from China and the global economic downturn, have recently entered a series of factory demolition (scraping) procedures, putting them at a critical point, as per Yonhap News.Amid growing concerns that the government is missing a "golden time" for the recovery of the petrochemical industry, some point out that a government-level decision is needed to restructure the industry.According to the petrochemical industry on the 12th, major petrochemical production plants such as LG Chemical, Lotte Chemical, and Yeocheon NCC are being demolished in series. LG Chem, which suspended the operation of its Styrene Monomer (SM) plant in Yeosu in March last year, recently decided to remove (scrap) some facilities at its Gimcheon and Najoo plants due to deteriorating profitability. Scraps are actually the preparation stage for the withdrawal of factories by completing the injection of raw materials in existing factories and completely emptying equipment pipes. The two plants are smaller than facilities in major industrial complexes, but they have been subject to production efficiency due to decreased profitability.At the Gimcheon plant, the production facility of Superabsorbent Resin (SAP), which has an annual production capacity of 90,000 tons, will be demolished. At the Naju plant, a 20,000-ton annual Styrene Acrylate Latex (SAL) production facility will be organized. The facility, which has been operating stably so far, is in the process of reorganizing due to aging facilities and intensifying competition with China. ?An LG Chem official said, "It is part of the petrochemical business efficiency work," adding, "However, it is not a withdrawal of the business, and we will continue the business through manpower restructuring and production efficiency."Yeocheon NCC, which was on the verge of bankruptcy, also began suspending operations at Yeosu's 3rd plant from the 8th. There are concerns that a liquidity crisis will occur if funds are not received immediately.Lotte Chemical also decided to scrap three of the five lines of the second plant in Yeosu in December last year. Due to the nature of the petrochemical industry that rides the industrial cycle, temporary suspension or shutdown occurs flexibly, but the decision to remove the plant actually means abandoning the facility, which ha...

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