MOSCOW (MRC) -- South Korea's LG Chemical and Lotte Chemical reduced their operating rates for monoethylene glycol (MEG) production facilities in Daesan last week due to technical problems, a company source from LG told TPS.
"Both plants have lowered rates to 80% due to steam problems," the source said.
The source said it was likely that both factories will resume maximum capacity by the end of the month.
LG Chemical's plant in Daesan has an annual production capacity of 108,000 mt /year, while Lotte's affected line makes 400,000 mt of MEG year. Lotte's separate 300,000 mt/year line at the same compound was unaffected.
As MRC wrote before, the Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010. Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC