USA: Construction Start for Ethane Cracker Lotte Invests in American Petrochemical Site
Lotte Chemical is the first Korean petrochemical company to locate a project in the United States. The joint venture with Axiall includes the construction of an ethane cracker as well as of an ethylene glycol plant..
Lake Charles/USA – Lacc Llc, the joint-venture company formed by Axiall and the Korean company Lotte Chemical Corporation, held a groundbreaking ceremony at its Calcasieu Parish construction site. In December 2015 the boards of Lotte and Axiall announced the completion of final investment decisions to construct an ethane cracker facility next to Axiall’s existing complex located in Lake Charles. Apart from the construction of an ethane cracker with an expected annual production capacity of 1 Million tons of ethylene, Lotte will also built a further plant for the production of 700,000 tons of ethylene glycol per year. The total capital investment in the facilities is estimated to be $ 3 billion. The facility’s anticipated start-up is early 2019.
“Among Korean petrochemical companies, Lotte Chemical is the first to locate a project in the United States; as such, this project represents a significant investment by Lotte Chemical,” said Soo Young Huh, Lotte Chemical president and chief executive officer.
“For Axiall this commitment marks the next phase of our continued investment in the Lake Charles area,” said Tim Mann, Axiall president and chief executive officer. “Our construction site is just west of our largest chemicals plant, where we have operated for nearly 70 years.”