Home / Knowledge / News / Textiles / S-OIL to complete Onsan refinery expansion by June 2011
S-OIL to complete Onsan refinery expansion by June 2011
13
Jun '09
S-OIL Corporation held a groundbreaking ceremony for the “Onsan refinery expansion project” at its Onsan factory (location: Ulju-gun, Ulsan) on Jun. 11 (Thu.). The ceremony was attended by S-OIL's CEO Ahmed A. Subaey, mayor of Ulsan metropolitan city Bak Maeng-woo and other 300 distinguished guests.

The Onsan refinery expansion project is a large-scale project that S-OIL set up to create a new growth engine for its future. Under the project, the refiner invests a total of 1.4 trillion won to construct facilities for producing 900,000 tons of para-xylene and 280,000 tons of benzene a year. The facilities are built on an 184,500m2 site and are to be completed by June 2011.

In 2011, when the petrochemical production facilities are completed, S-OIL's para-xylene and benzene production capacities will more than double to 1,600,000 tons and 580,000 tons a year, respectively. The Company also expects its operating income ratio to increase by roughly 20% beginning in 2012.

Furthermore, it plans to raise its refining capacity to 630,000 barrels per day from the current 580,000 barrels per day in order to additionally secure naphtha, a feedstock for petrochemical production.

S-OIL CEO Subaey said at the ceremony, “Coexisting and growing with local communities is one of our core values. We'd like to realize this value, by helping invigorate local economies through the direct and indirect creation of jobs during and after our project period.” The Onsan refinery expansion project, he added, is not a simple expansion of a factory, but will become a good opportunity for S-OIL to make its future growth engines more powerful and achieve higher economic performance as a global market leader, thereby further contributing to the growth of national and local economies.

Currently, S-OIL is capable of producing 700,000 tons of para-xylene, 300,000 tons of benzene and 200,000 tons of propylene a year. Considering that total domestic para-xylene production is 4,140,000 tons a year, S-OIL will play a bigger role in petrochemical market from 2011.

Benzene, which is produced by reforming naphtha in the crude oil refining process, becomes a basic feedstock for a variety of petrochemical products including synthetic resin while para-xylene, which is produced from toluene and xylene, is used as a feedstock for synthetic fibers.

“We set up this project to cope with growing demand for petrochemical products from China and other Asian regions in the future,” said an official at S-OIL.

“Taking advantage of our accumulated expertise in process technology and experience in operating petrochemical production facilities, we'll complete state-of-the-art facilities safely with a minimum investment and in the shortest possible period.”

There is a general consensus among industry insiders that the global petrochemical market will rebound from 2011. Saying this, S-OIL forecast that para-xylene demand would continue to increase in Asia, driven by the steady growth of China's polyester industry, but that para-xylene supply would not meet demand due to the Chinese government's strict control on investments, etc.


Must ReadView All

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Textiles | On 16th Oct 2018

Tajik textile-apparel exports rise 30% in Jan-Aug 2018

Tajikistan’s production of textile and apparel rose by 30 per cent in ...

Courtesy: Good On You

Apparel/Garments | On 16th Oct 2018

Good On You aims to give consumers access to brand info

Australia based Good On You, an app that provides ratings of over...

India may see strong cotton yarn exports growth: ICRA

Textiles | On 16th Oct 2018

India may see strong cotton yarn exports growth: ICRA

Indian spinners, who had reported a multi-year low profitability...

Interviews View All

Mandeep Nagi, Shades of India

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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


October 2018

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

news category


Related Categories:

Advanced Search