Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 5): Lotte Chemical Titan Holding Bhd (LCTitan) said today its US-based joint venture (JV) company Lotte Chemical USA Corp's (LC USA) ethane cracker and monoethylene glycol (MEG) plants had started commercial operations in August 2019 on an integrated basis.

LCTitan told Bursa Malaysia today LC USA is a 40:60 JV between LCTitan and Lotte Chemical Corp.

"The US ethane cracker plant was developed by means of a JV structure between LC USA, which has an 88% equity interest and Eagle US 2 LLC, a 100% held subsidiary of Axiall Corp (owned by Westlake Chemical Corp) which holds the remaining 12% equity interest. The company’s (LCTitan) effective equity interest in the US ethane cracker plant is 35.2%. The US MEG plant is wholly owned by LC USA and the company (LCTitan) has a 40% equity interest in this facility.

"The US ethane cracker plant will use ethane gas and process it into ethylene whereby 50% of the ethylene produced will be off taken by Axiall Corp and the other 50% will be consumed by the USA MEG plant as the primary feedstock. The US MEG plant produces MEG and derivatives. MEG is a vital ingredient for the production of polyester fibres and film, polyethylene terephthalate resins and engine coolants," LCTitan said.

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