The petrochemical business, going through an unprecedented disaster attributable to international oversupply and protectionist commerce insurance policies, has accomplished the primary section of its restructuring efforts. The federal government plans to speed up restructuring primarily based on the business’s proposals and introduce complete assist measures within the first half of subsequent yr.
On Dec. 22, the Ministry of Commerce, Trade and Sources held a petrochemical business assembly on the Korea Chamber of Commerce and Trade in Jung-gu, Seoul, and introduced that every one 16 petrochemical firms working naphtha cracking facilities (NCC) and propane dehydrogenation (PDH) amenities within the three petrochemical industrial complexes of Yeosu, Daesan, and Ulsan had submitted their enterprise restructuring plans. The federal government had beforehand introduced the “Petrochemical Trade Re-leap Promotion Path” in August this yr and demanded that enterprise restructuring plans be submitted by the tip of the yr.
Minister Kim Jung-kwan mentioned, “All firms submitted their enterprise restructuring plans inside the timeframe offered within the authorities’s roadmap, efficiently finishing step one of structural reform,” including, “If these plans are faithfully applied, we count on to realize the business’s voluntary capability discount goal of two.7 to three.7 million tons.”
The federal government plans to evaluate approval by means of the Enterprise Restructuring Plan Evaluate Committee as soon as firms submit their remaining enterprise restructuring plans primarily based on the present restructuring proposals. Upon approval of enterprise restructuring, the federal government plans to concurrently announce assist packages together with monetary, tax, analysis and improvement (R&D), and regulatory reduction measures to assist the implementation of enterprise restructuring.
Minister Kim mentioned, “Beginning subsequent yr, we should pursue structural reform with pace to create substantial outcomes,” and requested, “Please set up remaining enterprise restructuring plans promptly.”
The minister additionally mentioned, “We’ll rigorously tackle difficulties which will come up for native small and medium-sized accomplice firms and employment throughout the restructuring course of,” including, “We’ll put together a ‘Complete Help Plan for the Chemical Trade Ecosystem’ that features measures to resolve difficulties for native small and medium enterprises and employment assist by the primary half of subsequent yr.”
The federal government additionally introduced that the Chemical Trade Innovation Alliance will probably be launched on Dec. 23 to assist the high-value transformation of the petrochemical business. This alliance is a cooperation platform involving demand anchor firms, small and medium-sized chemical firms, academia, and analysis establishments, and can search R&D and infrastructure improvement assist measures for core supplies wanted for the development and eco-friendly transformation of key industries. A ministry official mentioned, “When pursuing R&D, we’ll prioritize assist for the R&D wants of firms collaborating in enterprise restructuring.”
In the meantime, the assembly additionally mentioned issues associated to the Daesan Venture No. 1, for which HD and Lotte utilized for enterprise restructuring approval on Nov. 26. Daesan Venture No. 1 is presently present process preliminary enterprise restructuring evaluate with the objective of approval in January subsequent yr. A ministry official defined, “The associated authorities assist bundle can also be within the remaining evaluate stage,” including, “Credit score monetary establishments plan to debate and finalize monetary assist measures primarily based on the continuing due diligence.”
