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Daesan Petrochemical Complex Aerial View | Hyundai Engineering & Construction (Accessed 14^th June 2025)

Hyundai Chemical operates its primary facilities at the Daesan petrochemical complex in Seosan, South Chungcheong Province, located within Hyundai Oilbank's refining complex. The company's operations include:

• Condensate Processing: Hyundai Chemical operates a 130,000 barrels-per-day condensate splitter that began commercial production in 2016. This facility processes condensate to produce mixed xylene and light naphtha.
• Heavy Feed Petrochemical Complex (HPC): In 2022, Hyundai Chemical completed construction of a major Heavy Feed Petrochemical Complex, representing an investment of over 3 trillion won ($2.1 billion). This facility has the capacity to produce 850,000 tons of ethylene and 500,000 tons of propylene per year.

Hyundai Chemical produces a diverse range of petrochemical products:

• Aromatics: Mixed xylene (MX), benzene, and para-xylene
• Olefins: Ethylene and propylene from the HPC facility
• Polymers: Polyethylene, polypropylene, and ethylene-vinyl acetate (EVA)
• Other products: Light naphtha and various finished petroleum products including diesel and jet fuel

Hyundai Chemical has secured a competitive advantage through its vertically integrated network. The company supplies products to Hyundai Oilbank, Lotte Chemical, and other partners, creating synergies based on raw material supply and sales networks of both parent companies.

The HPC facility is strategically designed for feedstock optimization by utilizing more than 60% of its feedstock from refinery by-products such as LPG, refinery offgas, and desulfurized heavy oil from the adjacent Daesan refinery. This integration with heavy fuel oil feedstock provides cost advantages compared to conventional petrochemical facilities.

References

1. Oh Seok-min, 12^th Oct 2022, Hyundai Chemical completes construction of heavy-feed petrochemical factory, Yonhap News Agency.
2. Jung Min-hee, 13^th Oct 2022, Hyundai Chemical Completes Daesan HPC Plant by Investing 3 Trillion Won, BusinessKorea.
3. Shin Ha-Nee, 12^th Oct 2022, Hyundai Chemical completes 3-trillion-won petrochemical plant, Korea JoonAng Daily.
4. Market News, 4^th Jul 2019, Hyundai Oilbank to expand aromatics capacity, Argus Media.
5. Energy News Summary, 2010 to 2016, Hyundai Oilbank, UANI.
6. 2018 Report, Review of Operations - Petrochemical Business, Cosmo Energy.
7. Robert Brelsford, 4^th Apr 2022, Korean petrochemical complex to boost operator’s competitiveness, Oil & Gas Journal.
8. Han Jaebeom, 31^st Oct 2024, HD Hyundai Oilbank will merge HD Hyundai Cosmo with Japanese Refiner Cosmo Oil, Maeil Business Newspaper.