SK Global Chemical inks deal with SINOPEC to form JV

SEOUL, June 28 (Yonhap) -- SK Innovation Co. said Friday that its wholly-owned unit SK Global Chemical Co. signed a deal with the state-run China National Petrochemical Corp. (SINOPEC) to set up a joint venture for the commercial operation of a naphtha cracking center (NCC) recently built in Wuhan, Central China.

SK Global Chemical holds a 35 percent stake in the joint venture, while SINOPEC owns the rest, said SK Innovation, the holding company of SK Global Chemical.

SK Innovation said the commercial operation at the plant will start in the second half of the year.

The plant has an annual capacity of about 2.5 million tons of petrochemicals including ethylene, which is a colorless flammable gas derived from natural gas and petroleum, and used as a source of many organic compounds.

SK Innovation, formerly known as SK Corp. and SINOPEC started work on the ethylene plant in December 2007.

The plant cost a total of 3.3 trillion won (US$2.9 billion) to complete, SK Innovation said.

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