>>
Home / Knowledge / News / Textiles / Cosmo Oil & Hyundai Oilbank forms JV for Paraxylene business

Cosmo Oil & Hyundai Oilbank forms JV for Paraxylene business

10
Jun '09
Cosmo Oil pleased to announce that Cosmo Oil Co., Ltd. and Hyundai Oilbank Co., Ltd. have entered into a Memorandum of Agreement for the establishment of a joint venture company to undertake the paraxylene business in Korea in relation to a previously entered into Memorandum of Understanding,"Strategic Cooperation of Oil Business". Outlined below are the main contents of this MOA.

Main contents of MOA for the establishment of JVC to jointly undertake the paraxylene business
1. Date of MOA: June 9, 2009
2. Signers: COSMO President & Representative, Yaichi Kimura HDO President & CEO, Young-Tae Seo
3. Overview of the JVC
- Planned establishment timing September, 2009 (to be agreed in due course)
- Location Korea (details are to be agreed in due course)
- Initial paid-in capital To be determined
- Investment ratio COSMO 50%, HDO 50%
- Primary business Production and sale of paraxylene and other related products

Size of plants :
a) Existing paraxylene plant using naphtha as feedstock, planned to be transferred from HDO (Located in HDO's Daesan refinery complex, planned to be transferred to the JVC in 2009), Naphtha splitter-55,000BPD, Naphtha desulfurization unit- 24,000BPD, Catalytic reforming unit - 21,500BPD, BTX unit - paraxylene production capacity 380kton/year, Other facilities related to production of paraxylene (e.g. tanks)
b) New paraxylene plant using mixed-xylene as feedstock (To be constructed within HDO's Daesan refinery complex in 2013), BTX unit - paraxylene production capacity 800kton/year, Other facilities related to production of paraxylene (e.g. tanks)

Purpose
In the "Third Consolidated Medium-Term Management Plan", COSMO positioned the petrochemical business as a growth strategy and have been seeking ways to enhance its business portfolio.

Since signing the MOU in April 2008 on comprehensive oil business cooperation with HDO, a company in which International Petroleum Investment Company (an investment company wholly owned by the government of Abu Dhabi and also COSMO's strategic partner and major shareholder) indirectly has 70% interest, we have been discussing the possibilities for business cooperation, with view to make entry into the paraxylene business.

As COSMO and HDO both expect synergies in expanding the paraxylene business within HDO's refinery complex from effective utilization of COSMO group's mixed-xylene, we agreed to sign this MOA to continue our discussions to establish the JVC to undertake the paraxylene business.

In addition, COSMO also made a decision today that COSMO will build a new mixed-xylene distillation unit within Yokkaichi refinery to create greater synergies between HDO in the paraxylene business. This mixed-xylene distillation unit will also enable COSMO to tackle the decreasing demand in the domestic gasoline market.

*Overview of the new mixed-xylene distillation unit
1. Location: Yokkaichi Refinery
2. Size of the plant : New mixed-xylene distillation unit-300kton/year
3. Planned completion timing : November, 2011

COSMO aims to increase and stabilize its profitability by establishing a consistent operational system from crude oil to paraxylene and balance the demand and supply of gasoline distillates through provision of stable supply of mixed-xylene produced by COSMO group to the JVC.

Cosmo Oil Co Ltd


Must ReadView All

Pic: Shutterstock

Textiles | On 17th Jan 2022

China’s GDP increases by 8.1% in 2021

The GDP of China was 114,367 billion yuan in 2021, an increase of 8.1 ...

Pic: Shutterstock

Textiles | On 17th Jan 2022

EU-UK bilateral trade of textiles witness major drop: EURATEX

The imports and exports of textiles between the EU and UK have...

Pic: Shutterstock

Textiles | On 17th Jan 2022

Canada-Vietnam sign MoU for joint economic committee

Canada and Vietnam recently signed a memorandum of understanding...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Trainers faced immense challenges as most were not tech-savvy

India-EU Summit, Representatives

India-EU Summit
Representatives

India-EU FTA will provide EU with better access to a huge & rapidly...

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Shivaani Jain,

Shivaani Jain

Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...

Ilker Hacioglu,

Ilker Hacioglu

Founded by three partners of French origin in 1988, LC Waikiki started its ...

K Madhavan,

K Madhavan

Established in 2005 by P Manjunath, Peps is India's largest inner spring...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Frank Heislitz, Freudenberg Performance Materials

Frank Heislitz
Freudenberg Performance Materials

Freudenberg Performance Materials is a leading global manufacturer of...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Ritu Kumar, Label - Ritu Kumar

Ritu Kumar
Label - Ritu Kumar

<b>Ritu Kumar</b> is the most respected designerwear brand in India...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments

ESTEEMED CLIENTS

Walmart
Vardhman Textile Ltd
PVH Corporation
LC Waikiki
Hela Clothing Pvt Ltd
Chico’ FAS
Asos
Decathlon
Midas Clothing Limited
Rosset ;& Cia Limited
Vianney Textil Hogar S.A. De C.V.
Groz-Beckert East Asia LLP
Cat Tuong Real Estate Group Joint Stock Company
Reiter India Private Limited
John Varvatos
Eastman Chemical Company
Tory Burch Hong Kong Ltd
Varner AS Retail

January 2022

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search