Newly opened plant has world’s largest production capacity for para-xylene
S-Oil’s newly expanded Onsan Plant in Ulsan was officially opened on Thursday in a ceremony attended by top industry and government officials including President Lee Myung-bak and Khalid Al-Falih, president of S-Oil’s parent Saudi Aramco.
The project, which doubled the plant’s petrochemicals production capacity, was completed in April and the expanded facility went into commercial operations in May.
The completion ceremony follows the stabilization period, during which the company ensured that all systems were running as intended.
“I think that a good company makes investments during a downturn as good times always follow. In this regard, (the plant expansion) was a very meaningful and wise investment,” Lee said.
“I think that (S-Oil) is likely one of the most successful models in Saudi Arabia’s overseas investments.”
S-Oil CEO Ahmed Subaey said that the new plant diversified the company’s portfolio and will serve as the new engine driving the future of S-Oil.
“The new facilities are the starting line for S-Oil’s future, not the final destination, and we will expand our business territory to petrochemicals downstream and further to solar energy business of manufacturing poly silicon,” Subaey said.
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President Lee Myung-bak (fifth from left), S-Oil chief executive Ahmed Subaey (fourth from left), Saudi Aramco president Khalid Al-Falih (second from left), Hanjin Group chairman Cho Yang-ho (third from right) join a ceremony to celebrate the expansion of S-Oil’s plant in Onsan, Ulsan, Thursday. (S-Oil) |
The 1.3 trillion won ($1.1 billion) expansion project pushed up the company’s annual capacity for producing petrochemicals such as paraxylene and benzene from 1.24 million metric tons to 2.46 million tons.
In terms of its annual paraxylene production capacity, 1.7 million tons, the plant now has the world’s largest production capacity for the material.
Derived from naphtha, paraxylene is used to produce a wide range of products including polyester fibers and PET containers.
In addition, the Onsan facility’s daily crude oil refining capacity has also increased to 669,000 barrels from the previous 580,000 barrels.
“S-Oil exports about 60 percent of its petrochemical products and is now positioned as the largest paraxylene supplier in the region thanks to new capacity addition. On the back of solid demand growth in China and Asia, which make up 79 percent of global paraxylene demand, S-Oil will create stellar economic results with over 20 percent growth in operating income,” the S-Oil CEO said.
“SEP goes beyond plant construction but serves as a springboard on which S-Oil will consolidate its core growth engine to lead our future growth and create greater economic profits, thereby contributing more to the local communities and the national economy.”
By Choi He-suk (
cheesuk@heraldcorp.com)
