South Korea's LG Chem shuts down No. 2 ethylene plant at Yeosu complex
The logo of LG Chem is seen at its office building in Seoul, South Korea, October 16, 2020. REUTERS/Kim Hong-Ji
SEOUL, March 23 : South Korea's LG Chem has temporarily shut down the No. 2 naphtha cracker at its Yeosu complex due to disruptions in supplies linked to the war in Iran, the company said in a regulatory filing on Monday.
LG Chem said the temporary halt was caused by difficulties in securing naphtha feedstock for its naphtha cracking centre (NCC), adding it would focus on stabilising its supply chain and restart production promptly once raw material supplies normalise.
The company did not give a timeline for resuming operations, saying it would disclose the date once it is decided.
The plant is located in the Yeosu industrial complex and has an annual capacity of 800,000 metric tons.
Ethylene, a key petrochemical material produced at NCCs, is widely used to make plastics such as polyethylene as well as synthetic fibres, solvents and other chemical products used in packaging, construction and automotive manufacturing.
