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The reason why South Korean petrochemical manufacturers have expanded their production capacity of naphtha crackers is that they expect the future demand for petrochemical products from China's major trading partners, China's petrochemicals, to continue to grow. South Korea’s LG Chemical Company expanded its naphtha cracker in the Lishui Petrochemical Complex to 1 million tons/year in April this year, and plans to convert the production capacity of the naphtha cracker in the Aung San Petrochemical Complex from the current 800,000 tons. It will expand to 900,000 tons per year and the expansion project will continue from March 2010 to April 2011. At the same time, Samsung Total also expanded its naphtha cracker production capacity to 1 million tons per year. The Licheon naphtha cracking center, the largest petrochemical company in South Korea, also has an energy expansion plan. It was originally planned to expand the No. 2 naphtha cracker in Yeosu that produces 578,000 tons of ethylene in the spring of 2010. However, the company has not officially released this news, and the industry speculated that the project has not yet been finalized.
Petrochemical companies have expanded cracking capacity
The Korea Petrochemical Industry Association recently stated that Korea’s ethylene production capacity will increase by 250,000 tons in 2011 to 7.86 million tons.