SK Group to Construct Petrochemical Factory in Peru

Tuesday, Nov 18, 2008

The SK Group will build a massive petrochemical factory in Peru, a country with abundant natural resources in Latin America.

The company announced on Sunday that its chairman, Chey Tae-won, who will accompany President Lee Myung-bak on his state visit to Latin America, will negotiate building the petrochemical plant with the Peruvian government. President Lee¡¯s delegation will visit Peru from Nov. 22 to 23 for the APEC meeting.

The SK Group decided to build an ethylene production plant near the Camisia mine in the heart of Peru, and decided to bid to the Peruvian government in the first half of next year. The group is confident about winning the bid after investing more than US$ 1 billion in Peru over the last decade; it also has experience with the Camisia mine, which produces more than 80 percent of the country¡¯s total gas supply.

¡°We decided to begin an all-out effort to expand our petrochemical investment business using the current resources development project with Peru as our base,¡± the SK Group said.

The group currently helps produce crude oil and natural gas in three mines in Peru, including Camisia, and is exploring one additional mine. The company holds a 20-percent share in the LNG plant project, set to be complete by 2010.

Source: Chosun