Finance Minister Koo Yun-cheol, heart, speaks throughout an economy-related ministerial assembly on the Authorities Complicated Sejong, Wednesday. Yonhap
Finance Minister Koo Yun-cheol stated Wednesday that the federal government will promptly put together assist measures in tandem with approving enterprise restructuring plans for struggling petrochemical corporations which have submitted voluntary restructuring proposals.
All 16 main petrochemical corporations and three industrial complexes have lately submitted their preliminary restructuring plans to the federal government, underneath which they goal to scale back the mixed capability of their naphtha cracking facilities (NCCs) by as much as 3.7 million tons.
“The trade met the deadline by itself initiative with out lacking the golden time, and now we have confirmed a stronger-than-expected dedication to capability discount, that means step one has been taken efficiently,” Koo stated whereas presiding over an economy-related ministerial assembly. The deadline for submissions is Dec. 31.
Referring to the primary restructuring proposal submitted, often called the “Daesan No. 1 Undertaking,” Koo stated the federal government will swiftly roll out assist measures, alongside enterprise restructuring approval, early subsequent yr.
Underneath the voluntary restructuring scheme, native petrochemical corporations plan to chop NCC capability as a part of sweeping restructuring efforts geared toward addressing an industrywide disaster attributable to the worldwide oversupply.
“If the plans are faithfully carried out, the unique capability discount goal of two.7 million to three.7 million tons is anticipated to be achievable,” Koo stated.
In August, the federal government unveiled three guiding ideas for supporting the ailing petrochemical trade and gave corporations till the top of the yr to formulate voluntary enterprise restructuring plans.
