TotalFinaElf plans to set up a petrochemicals joint venture with Samsung in South Korea
TotalFinaElf, via its chemicals branch ATOFINA, and the South Korean company Samsung, will sign Dec. 2 a memorandum of understanding with the aim of setting up a 50/50 joint venture in the petrochemicals sector in South Korea, to which the assets of Samsung General Chemicals will be transferred.
The joint venture will produce and market a wide range of base petrochemicals and polyolefins from the integrated industrial site of Samsung General Chemicals at Daesan. This modern and competitive petrochemicals complex will be transferred as well to the joint venture. The petrochemicals facility has an annual production capacity of 650,000 tons of ethylene, 670,000 tons of styrene, 500,000 tons of paraxylene and 670,000 tons of polyolefins and is located on the west coast of South Korea, 150 kilometers southwest of Seoul and 400 km from China.
This investment will allow ATOFINA to acquire a major petrochemicals manufacturing base in Asia and to aggressively develop its commercial position in the region.
The joint venture is consistent with TotalFinaElf's strategy to develop its position in high growth regions of the world, notably in petrochemicals, while continuing to dynamically manage its chemicals portfolio of assets. This strategy should lead to maintaining the amount of capital employed in the chemicals segment.
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