South Korean petrochemical producer LG Chem said it plans to expand output of its cracker at Daesan by 230,000 t/y as of 2019. The upgrade, which will cost the equivalent of €227 million, will bring capacity at the site to 1.27 million t/y and the company’s total ethylene capability, including the 1.16 million t/y output of the Yeosu, Korea, cracker, to 2.43 million t/y.

LG Chem said the expansion upstream is intended to shift its production focus to higher value-added products and allow it to maintain its lead in its markets. The upgrade also reflects plans by the Korean government to restructure the country’s industry to reduce oversupply in an effort to counter pressure from competitors in China, the largest export market for Korean chemicals.

At the same time, the Korean player plans to convert one of its two polystyrene plants at Yeosu to produce ABS by the first half of 2017 and thus help reduce pressure from overcapacity in the polystyrene market.  The conversion is expected to increase ABS output by 30,000 t/y to 880,000 t/y while at the same time cutting PS production to 50,000 t/y from currently 100,000 t/y.