PARIS, April 12 (Reuters) - French oil and gas company Total said on Wednesday that its South Korean joint venture with Hanwha will invest $450 million in the group’s refining and petrochemicals platform to expand capacity in order to meet growing demand from China.
The company said the investment will increase the Daesan complex’s ethylene capacity by 30 percent to 1.4 million tonnes per year. Ethylene is widely used in making plastics.
Total added that the expansion of the project is scheduled to be completed by mid-2019.
“The additional ethylene production will meet local demand and also supply the nearby fast-growing Chinese market which imports a significant part of its ethylene requirements,” Total said in a statement.
The Daesan refining and petrochemicals platform is a 50/50 joint venture between the French oil and gas major and the South Korean conglomerate. The venture generated a net result of nearly $1 billion in 2016. (Reporting by Bate Felix; Editing by Sudip Kar-Gupta)