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LG Chem Halts Plant Amid Soaring Naphtha Prices
23 Mar
Summary
- LG Chem plans to shut down its second ethylene plant.
- The plant has an annual capacity of 800,000 metric tons.
- Soaring naphtha prices are the reason for the shutdown.
South Korea's LG Chem is preparing to cease operations at its second ethylene plant. This facility, located in the Yeosu industrial complex, possesses a significant annual production capacity of 800,000 metric tons. The impending shutdown is a direct consequence of escalating naphtha prices, a key feedstock for ethylene production. These soaring costs are reportedly linked to the economic repercussions stemming from the Iran conflict.
While LG Chem has chosen not to comment on the matter, information from sources familiar with the situation indicates the plant's closure is imminent. The situation highlights the vulnerability of the petrochemical industry to geopolitical events and commodity price volatility. This development was first reported by the Herald Business newspaper.
