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Total-Hanwha JV to invest $450 MM on refining and petrochemicals platform

PARIS (Reuters) -- French oil and gas company Total said on Wednesday that its South Korean JV with Hanwha will invest $450 MM in the group's refining and petrochemicals platform to expand capacity in order to meet growing demand from China.

Photo Courtesy of Total-Hanwha.
Photo Courtesy of Total-Hanwha.

The company said the investment will increase the Daesan complex's ethylene capacity by 30% to 1.4 MMtpy. 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 JV between the French oil and gas major and the South Korean conglomerate. The venture generated a net result of nearly $1 B in 2016.

Reporting by Bate Felix; Editing by Sudip Kar-Gupta

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