Korea’s leading textile and chemical firm Hyosung Corp. will construct natural gas-fueled polypropylene (PP) manufacturing and liquefied petroleum gas (LPG) storage infrastructure in Vietnam at a cost of $1.2 billion, a move that would sharply ramp up its production capacity in the widely applied versatile plastic.
According to the firm Tuesday, the company signed a memorandum of understanding with Vietnam’s government to invest $1.2 billion to create a manufacturing and storage complex in Cai Mep Industrial Zone in Tan Thanh District, Ba Ria-Vung Tau Province.
Under the deal, Hyosung will carry out the building project in two phases. In the first phase, the firm will build an LPG storage facility at $133 million, and a PP plant at $336 million. The second phase involves building propane dehydrogenation (PDH) plant for $496 million and expansion in the PP plant for $226 million.
Hyosung is counting on PP as its new revenue source. PP is a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles, stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes. The firm also plans to build an additional PP plant with annual production capacity of 200,000 tonnes at around 140 billion won ($122.2 million) in Korea.
A Hyosung official hoped that its latest project in Vietnam would allow the firm to secure production lines for LPG and PP and expand its footprint in the Southeast Asian market.
At 10:28 Tuesday, shares of Hyosung Corp. were traded at 124,500 won, down 2.73 percent from the previous session.
According to the firm Tuesday, the company signed a memorandum of understanding with Vietnam’s government to invest $1.2 billion to create a manufacturing and storage complex in Cai Mep Industrial Zone in Tan Thanh District, Ba Ria-Vung Tau Province.
Hyosung is counting on PP as its new revenue source. PP is a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles, stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes. The firm also plans to build an additional PP plant with annual production capacity of 200,000 tonnes at around 140 billion won ($122.2 million) in Korea.
A Hyosung official hoped that its latest project in Vietnam would allow the firm to secure production lines for LPG and PP and expand its footprint in the Southeast Asian market.
At 10:28 Tuesday, shares of Hyosung Corp. were traded at 124,500 won, down 2.73 percent from the previous session.
By Kang Young-woon - http://pulsenews.co.kr
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