South Korea¡¯s YNCC Permanently Shuts Down Two Ethylene Plants
2026-3-16
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 Yeosu, South Korea, which will reduce the company¡¯s ethylene output by 60%.
YNCC submitted a restructuring plan to the South Korean government on March 6 to close the two plants at its Yeosu site, with annual capacities of 900,000 tonnes and 500,000 tonnes respectively. YNCC¡¯s annual ethylene production capacity will drop from 2.3 million tonnes to around 900,000 tonnes.
YNCC plans to establish a joint venture with Lotte Chemical at the Yeosu plant by the end of the year. Under the planned joint venture, YNCC¡¯s existing shareholders ¡ª Hanwha Solutions and DL Chemical ¡ª as well as Lotte are expected to each hold a one third stake.
The report noted that this restructuring, together with the earlier consolidation at the Daesan industrial complex, marks major progress in the restructuring of South Korea¡¯s petrochemical industry.
The South Korean government aims to achieve a voluntary reduction of 2.7¨C3.7 million tonnes in annual ethylene production capacity, compared with the current total capacity of around 14.7 million tonnes. Lotte recently agreed to shut down a 1.1 million tonne per year cracking unit at its Daesan plant.
YNCC submitted a restructuring plan to the South Korean government on March 6 to close the two plants at its Yeosu site, with annual capacities of 900,000 tonnes and 500,000 tonnes respectively. YNCC¡¯s annual ethylene production capacity will drop from 2.3 million tonnes to around 900,000 tonnes.
YNCC plans to establish a joint venture with Lotte Chemical at the Yeosu plant by the end of the year. Under the planned joint venture, YNCC¡¯s existing shareholders ¡ª Hanwha Solutions and DL Chemical ¡ª as well as Lotte are expected to each hold a one third stake.
The report noted that this restructuring, together with the earlier consolidation at the Daesan industrial complex, marks major progress in the restructuring of South Korea¡¯s petrochemical industry.
The South Korean government aims to achieve a voluntary reduction of 2.7¨C3.7 million tonnes in annual ethylene production capacity, compared with the current total capacity of around 14.7 million tonnes. Lotte recently agreed to shut down a 1.1 million tonne per year cracking unit at its Daesan plant.