South Korean ethylene producer Yeochun shuts down two units

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　According to the Korea Economic Daily, South Korean ethylene producer Yeochun NCC (YNCC) has decided to permanently shut down its No. 2 and No. 3 naphtha cracking units in Ulsan, South Korea, which will reduce the company’s ethylene production by 60%. 　　YNCC submitted a restructuring plan to the South Korean government on March 6, which includes shutting down two production units with annual capacities of 900,000 tons and 500,000 tons respectively; as a result, YNCC’s annual ethylene production capacity will drop from 2.3 million tons to around 900,000 tons. 　　YNCC plans to establish a joint venture with Lotte Chemical Company at its Ulsan plant by the end of the year. It is expected that in the joint venture, YNCC’s current shareholders – Hanwha Solutions and DL Chemical, along with Lotte – will each hold a 33% stake. 　　Reports say that this restructuring, along with the previous restructuring project at the Daisan Industrial Park, marks a significant advancement in the restructuring of South Korea’s petrochemical industry. 　　The South Korean government aims for a voluntary reduction in annual ethylene production capacity by 2.7 million to 3.7 million tons, with the current total capacity being around 14.7 million tons. Lotte has recently agreed to shut down a cracking unit at its Daisan plant with an annual production capacity of 1.1 million tons.