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Posco, SK Energy Sign MOU for Coal Chemistry Development
11/03/2010 - Posco signs Memorandum of Understanding with SK Energy to form a coal chemistry partnership focusing on the feasibility of commercializing value-added chemical products made from steelmaking and petrochemical by-products.
Posco recently signed a Memorandum of Understanding with SK Energy to form a coal chemistry partnership.
Signed by Posco CEO Joon-Yang Chung and SK Energy President Ja-Young Koo, the new MoU centers on investigating the feasibility of joint coal chemical business between the two companies. Under the agreement, Posco and SK Energy will review the feasibility of developing their business and commercializing value-added chemical products made from by-products of steel and petroleum-based products.
The MOU itself deals primarily with investigating the feasibility of producing and commercializing the high value-added chemical products derived from industrial by-products of each of the two companies, including crude light oil and coal tar — by-products from Posco`s steel production processes — and petroleum by-products from SK Energy. In the first phase of development, the two companies will use their own technology to produce basic petrochemical products, while the second phase will be for producing high functionality engineering plastics and other high value-added products.
Posco expects the joint project to provide an opportunity for overseas expansion and business diversification, such as defining a new business model for the integration of steel and petrochemical industries, and establishing a solid foundation for the large-scale coal chemical business.
The MOU itself deals primarily with investigating the feasibility of producing and commercializing the high value-added chemical products derived from industrial by-products of each of the two companies, including crude light oil and coal tar — by-products from Posco`s steel production processes — and petroleum by-products from SK Energy. In the first phase of development, the two companies will use their own technology to produce basic petrochemical products, while the second phase will be for producing high functionality engineering plastics and other high value-added products.
Posco expects the joint project to provide an opportunity for overseas expansion and business diversification, such as defining a new business model for the integration of steel and petrochemical industries, and establishing a solid foundation for the large-scale coal chemical business.
