Daelim Industrial (Daelim) takes steps to develop a world-scale petrochemical complex in the U.S. Daelim is planning to further study with PTTGC America, a 100% subsidiary of PTT Global Chemical Public Company Limited, for the feasibility of development of the petrochemical complex in U.S by execution of the Heads of Agreement (HOA). Daelim targets to reach its final investment decision by the end of this year through the study of the Project with PTTGC America to confirm development conditions such as equity structure, total investment cost and so on. After its successful development and FID, this Project will produce ethylene from the ECC (ethane cracking center) and polyethylene products.
Daelim drives this project to improve stable revenues and profits for the petrochemical business stream. Daelim anticipates its manufacturing facility with competitive advantages such as affluent accessibility of domestic market, competitive price and its stable supply of raw materials. Furthermore, Daelim will be able to play balancing out its business portfolio with both Naphtha based and Ethane based manufacturing facilities, which will also allow to respond actively changes in global petrochemical environment.
This world-scale petrochemical complex will be located in Ohio, major shale gas fields of U.S enabling sourcing low priced ethane for producing ethylene as feedstock. The Project will be located near Northeast region of US, which ranges about 70% of domestic consumption, for boosting its logistical efficiency. DAELIM plans to complete financing arrangements by the end of this year and it will take approximately 4-5 years to be on commercial operation. This complex will annually produce 1.5 million metric ton of ethylene with polyethylene derivatives.
With its completion of US manufacturing facility, DAELIM will increase its total production capacity of ethylene to 3.41 million metric ton annually. Currently, DAELIM operates Naphtha based Cracker in Yeosu, South Korea with a capacity of 1.91 million metric ton of ethylene. DAELIM plans to set up customized marketing strategies toward its exporting markets including North America and Asia with operating its manufacturing facilities in US and South Korea.
DAELIM also plans to penetrate more aggressively toward European and South American markets based on US facility. Until today, these markets have been very limited for Korean petrochemical producers for those markets’ high entering barriers and transportation costs. In 2015, DAELIM is also well recognized for its Polyisobutylene (“PIB”) technology and operational know-how including licensing out to Lubrizol, a US based petrochemical company.
PTT Global Chemical Public Company Limited (PTTGC) is a leading petrochemical company in Thailand and PTT Group’s petrochemical flagship. PTTGC is comprised of diversified and comprehensive petrochemical businesses, including manufacturing and distribution of upstream, intermediate, and downstream petrochemical products.