[Alpha Biz=(Chicago) Reporter Kim Jisun] It was confirmed on the 23rd that LG Chem's second naphtha cracking facility (NCC) in Yeosu, South Jeolla Province, has recently stopped operation. This is because we are considering relocating our workforce to another factory. NCC is a key facility for manufacturing basic oils such as ethylene.

The LG Chem is expected to begin individual interviews with employees soon. The meeting schedule is not fixed yet. Recently, regular maintenance of the second plant has been completed, but the plant has been shut down.

In the past, there were shutdowns or manpower transfers depending on market conditions. Currently, it is a level of loss if you turn the factory around. Ethylene spread (margin), a representative profitability indicator of petrochemicals, is $ 175 as of the 22nd. We usually see $300 as a break-even point. In other words, the plant could continue to shut down until profitability improves.

 

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