30 Mar 2020
Closure part of South Korean company's strategy to focus on high-value products
Seoul – SK Global Chemicals is closing down its EPDM rubber production plant in Ulsan, South Korea, the company announced 26 March.
The move is part of a “deep change” strategy to focus on high-value products and reduce the production of general-purpose chemicals, SK Global Chemicals said in a statement.
Operational since 1992, the EPDM unit has a production capacity of 30 kilotonnes per annum (ktpa) and is fed by Ulsan naphtha cracker, which is also being shut down.
The company said it started the process of closing down the 200ktpa naphtha cracker in December last year and will discontinue the EPDM unit in the second quarter of 2020.
The South Korean chemicals company cited oversupply and the old age of the facilities as part of the reason behind the closures.
The company said it is planning to select a high-value packaging business as its “next-generation growth focus” and secure a portfolio through related mergers & acquisitions.
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