SK geocentric- Saudi JV to ramp up output of chemical for vehicles, solar panels

South Korea’s SK geo centric – the chemical unit of SK Group – is investing 200 billion won ($149 million) with a Saudi strategic partner to beef up production of high-performance chemical material used in automobiles and solar power plants.

SK geo centric announced on Tuesday that SABIC SK Nexlene Company (SSNC), the joint venture established by SK geocentric and Saudi Basic Industries Corporation (SABIC) in 2015, signed a memorandum of understanding (MOU) with Ulsan Metropolitan City.

“We will spare no administrative support to ensure that the process of building and expanding the plant goes smoothly,” said Kim Doo-gyeom, the mayor of Ulsan.

Under the agreement, SSNC will invest around 200 billion won ($149 million) by July 2024 through its domestic subsidiary Korea Nexlene Company – in which it has a 100 percent stake - to build and expand a production facility for polyolefin elastomer (POE), an elastomeric and thermoplastic material used in packaging, automotive exteriors and interiors, manufacturing materials, and more.

SK Nexlene`s Ulsan plant. [Source: SK innovation Co.]

SSNC invested 605.1 billion won in Korea Nexlene Company in 2015 to build a 68,100 square meters Ulsan plant which currently produces 210,000 tons of Nexlene products annually. The Korea Nexlene Company’s Ulsan plant uses Nexlene to produce POE, polyolefin plasma (POP), and linear low-density polyethylene (LLDPE).

Nexlene is a high-performance polyethylene material used in plastic and vinyl developed solely by SK geocentric’s own technology. It is cleaner, more transparent, and stronger than other traditional polyethylene products.

Annual production is expected to grow by 43 percent to 300,000 tons upon expansion, and more than 90 percent of the output will be exported.

The POE and POP market is expected to grow around 5 percent each year.

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