Saturday, May 31, 2008

Samsung Total Petrochemicals Co., Ltd. is planning to open its office in China

On June 1st,Samsung Total Petrochemicals Co., Ltd. , a South Korean petrochemical producer, announced to open its office in China. The company is planning to produce and sale petrochemical products in China. The new office will oversee the production and sales of polypropylene (PP), a petrochemical product mostly used in cars and electric appliances. The Economic Times reports:

Foreign firms have been eager to invest in China's huge petrochemical industry, which has been expanding at a double-digit annual rate in recent years. Last week, South Korea's largest refiner SK Energy confirmed it had agreed to buy a 35 per cent stake in a joint venture with Sinopec Corp to build a petrochemical complex in central China.

Samsung Total Petrochemicals Co., Ltd. is a joint venture formed by the famous South Korean conglomerate Samsung Group and Total S.A. (NYSE:TOT),a reputed French oil producing company. In January, Samsung Total announced to build a composite polypropylene plant in China with an annual production capacity of 28,000 tonnes. Construction of the plant will start from this month. Though the company did not reveal the value of the deal, from a reliable source, it has been confirmed that the investment would be around 1 trillion won.

Related article:
Economic Times