仏アトフィナの出資受け入れ サムスン総合 JV設立合意
December 2, 2002 TotalFinaElf
TotalFinaElf plans to set up a petrochemicals joint venture with Samsung in South Korea
TotalFinaElf, via its chemicals branch ATOFINA, and the South Korean company Samsung, will sign Dec. 2 a memorandum of understanding with the aim of setting up a 50/50 joint venture in the petrochemicals sector in South Korea, to which the assets of Samsung General Chemicals will be transferred.
The joint venture will produce and market a wide range of base petrochemicals and polyolefins from the integrated industrial site of Samsung General Chemicals at Daesan. This modern and competitive petrochemicals complex will be transferred as well to the joint venture. The petrochemicals facility has an annual production capacity of 650,000 tons of ethylene, 670,000 tons of styrene, 500,000 tons of paraxylene and 670,000 tons of polyolefins and is located on the west coast of South Korea, 150 kilometers southwest of Seoul and 400 km from China.
This investment will allow ATOFINA to acquire a major petrochemicals manufacturing base in Asia and to aggressively develop its commercial position in the region.
The joint venture is consistent with TotalFinaElf's strategy to develop its position in high growth regions of the world, notably in petrochemicals, while continuing to dynamically manage its chemicals portfolio of assets. This strategy should lead to maintaining the amount of capital employed in the chemicals segment.
Samsung General Chemicals is the polyolefins and base petrochemicals subsidiary of Samsung. In 2001, Samsung posted revenues of 98.7 billion US dollars and a net profit of 4.5 billion USD. Samsung General Chemicals employs 900 people and registered revenues in 2001 of 1.2 billion USD, of which 45% were posted outside South Korea.
Dec. 2, 2002 Samsung General Chemicals
A Petrochemical Joint Venture is to be established between
Samsung General Chemicals and Atofina, the Chemicals branch of TotalFinaElf
・ MOU signed between Samsung General Chemicals and Atofina, the chemical Branch of the French Group TotalFinaElf.
・ Definitive Agreements will be signed during the 1st quarter of 2003 based on 50:50 ownership .
・The new joint venture is expected to be competitive through a marketing and sales alliance as well as a sound financial structure.
On December 2, Samsung General Chemicals Co., Ltd. (Mr. H.S. Ko, President & CEO ) signed a Memorandum of Understanding (MOU) in Seoul with Atofina (Mr. Francois Cornelis , President & CEO), the chemical branch of one of the world’s leading energy and chemical business groups, TotalFinaElf Group of France, to establish a joint venture (JV) company in Korea. When completed, the joint venture will mark the first occasion where a foreign chemical company has participated in a full integrated petrochemical joint venture in Korea.
According to the MOU, Samsung General Chemicals will launch the new JV within the 1st quarter of 2003, with Samsung and Atofina each holding a 50% equity stake. The companies also agreed to complete due diligence as soon as possible.
Through the new JV, Samsung General Chemicals is expected to upgrade the overall competitiveness of the Korean petrochemical industry by achieving a highly competitive business and sound financial structure. The joint venture will secure its market leading position through economies of scale in production and sales as well as optimize its business portfolio through the integration of technical expertise and advanced technologies.
In particular, the JV will be able to improve its cost competitiveness through purchase cooperation with TotalFinaElf’s expertise and position in feedstocks. This will enable the JV to fortify its already existing position of SGC in Asia including the Chinese market.
This project will provide Atofina with a major manufacturing base in Asia and reinforce its marketing position in a rapidly growing market in partnership with a leading regional player. It is an additional and significant step in Atofina’s globalisation strategy in Petrochemicals.
The combined production capacities of Samsung General Chemicals and Atofina are 3,650,000 tons of Ethylene, 4,570,000 tons of Polyolefins (Polyethylene (PE) + Polypropylene (PP)) and 1,950,000 tons of Styrene Monomer (SM). The JV will be well positioned in regional and global chemical markets with a substantial marketing capacity, in -line with global petrochemical industry trends.
In addition, there is a sufficient vacant land within SGC’s Daesan complex for the JV to increase production capacity for existing products or consider investments for new specialty products.
In 2002, SGC is expecting to achieve its highest level of recurring profits in the company’s history. This has been directly attributable to SGC’s internal efforts to prepare for the cyclical nature of the petrochemical business by reducing debt by KRW 1.1 trillion and generating KRW120 billion in cost savings through implementing a profit-oriented business restructuring plan.
This plan has focused on:
・‘Selection and Focus’ strategy, including asset and business disposal, spin-offs , etc.
・Maximization of synergies and timely management decisions involving the consolidation of business units and divisions
・The “Survival-1000” business innovation campaign for cost savings and revenue enhancement in the areas of energy, logistics, raw materials and product upgrading .
The agreement between SGC and Atofina represents the first occasion where one of the world’s major chemical companies has invested a 50% stake in a Korean petrochemical company.
About TotalFinaElf Group
The TotalFinaElf (“TFE”) Group was formed through the merger of Total, PetroFina and Elf Aquitaine and is the largest company on the French stock market in terms of market capitalization (around US$100 billion) and is the 4th largest oil and gas company in the world. Through oil and gas exploration, oil refinery operations, oil products marketing and the petrochemical businesses, TFE achieved sales of US$94 billion and net income of US$7 billion in 2001.
Atofina, the Chemical branch of TotalFinaElf, is one of the leading Chemicals companies in the world. Its 2001 sales reached US$18 billion, split into 3 business groups : Base Chemicals & Polymers, Intermediates and Performance Polymers and Specialties .
About Samsung General Chemicals Co. Ltd.
Samsung General Chemicals Co. Ltd. (SGC) is an affiliate of the Samsung Group in Korea. The company had sales of US$ 1.25 billion in 2001 and has 900 employees. SGC ’s main products have a production capacity of 650,000 tons of Ethylene, 670,000 tons of Polyolefins (PE, PP) and 670,000 tons of Styrene Monomer (SM).
April 16, 2003 Financial
Jv paves way for expansion; Atofina and Samsung General Chemicals cracker in Korea.
Atofina and Samsung General Chemicals (SGC) have formally agreed to establish a 50:50 $1.5 bn joint venture to increase the capacity of a cracker in Daesan, South Korea, from 650,000 tonnes/y to 1 M tonnes/y. Down stream facilities will be expanded and surplus ethylene exported to China. Other current capacities are 670,000 tonnes/y of styrene, 500,000 tonnes/y p-xylene and 670,000 tonnes/y of polyolefins. Atofina will contribute $780 M and SGC will supply the balance, in addition to its Daesan petrochemical complex.
Atofina is also planning to expand its polystyrene (PS) capacity in Asia. It is looking at 2 options: doubling the capacity of its polystyrene (PS) plant in Sanshui, China, to 200,000 tonnes/y. This recently acquired plant already makes 50,000 tonnes/y of high impact PS (HIPS) and 50,000 tonnes/y of general purpose PS (GPPS); or constructing a new 300,000 tonnes/y plant in Huizhou(恵州), China, of which 120,000 tonnes/y would be GPPS and 180,000 tonnes/y HIPS. If the Daesan cracker is expanded it could supply styrene to one of the projected PS plants.
Chemicals, a joint venture with British BP AMOCO Chemicals
(established in 1989), manufactures 350,000 tons of industrial
acid and 10,000 tons of hydrogen annually. SAMSUNG-BP Chemicals
aims at being the top Asian acetyls producer by 2000 and one of
the world's top three acetic acid manufactures by the early
beginning of the 21st century, armed with technology, capital,
and the best human resources
Products : Acetic Acid, Hydrogen, VAM(Vinyl Acetate Monomer)
Joint Venture Agreement between Samsung-BP Chemicals Ltd.
Establish Samsung-BP Chemicals Co., Ltd
Complete Acetic Acid Plant construction (150Ktes/yr)
|Establishment of Asian Acetyls Co.,Ltd, a joint venture between Samsung-BP Chemicals Ltd, and Union Carbide Corporation|
|1996.10.11||Complete VAM Plant (150 ktes/yr)|
|1997.07.30||Acetic Acid plant debottlenecking (350Ktes/yr)|
Samsung Petrochemical Company (SPC) http://www.myspc.co.kr/eng/about/index.html
Samsung Petrochemical Company
(SPC) was established in July 1974 as a joint venture of 50%
Samsung, 35% BP (ex-Amoco) and 15% Mitsui Chemicals. Commissioned
in 1980 to produce approximately 100,000 tonnes per annum of
purified terephthalic acid (PTA) for the first time in Korea, the
site contributed greatly to the local polyester industry by
supplying domestic PTA, their significant raw material.
Consequently polyester business, a basic and core one of then
booming Korean industry, enhanced its competitiveness
PTA is the significant raw material of domestic polyester fibers and also used worldwide for manufacturing polyethylene terephthalate (PET) resin for applications such as carbonated beverage bottles, etc. and continuously expanded its applications in various areas based its high technology.
Now SPC having its four production units including Seosan PTA at the end of last year produces 1,400,000 tonnes per annum enough to supply reliably to its customers high quality PTA at low price. In addition, it is well known with its environment-friendly operation through advanced technology. The company received a certificate of environment-friendly corporate authorized by the government for the first time among Korean petrochemical companies. Its commitment to environment for better life will continue in the future.
大山 400千トン Samsung General Chemicals sold PTA Unit to Samsung Petrochemical
第一毛織 Cheil Industries http://www.cii.samsung.com/english
Since established as a parent company of Samsung in 1954, Cheil Industries has been the driving force behind the remarkable development of Korea's textile industry. It ventured into the fashion industry by launching the business suit division in 1979 and into the chemical resin business in 1989. It further expanded to the information and communications material business with the construction of the EMC plant in 1994 and put the star business on the right track with the successful launching of its nine new materials in 2000. Cheil Industries is primed to take a leap forward in the 21st century with its smooth restructuring process, substantial and balanced growth of its business units and intensive nurturing of the information and communications material business.
We are devoted to enhancing national competitiveness as well as developing the domestic industry, and to resolutely investing in promising industries of the future. By recognizing the importance of up-to-date new material, Cheil Industries has launched a chemical industry for plastic material that bears the vigorous mark of a secondarily launched enterprise. Indeed, 1989 brought the opportunity to move into the manufacture of ABS and PS and expand our production sector with EPS and SAN . In addition we produce and deliver a broad range of products, including electronic chemical materials such as CMP(Chemical Mechanical Polishing) Slurry, CR(Color Resist), PI(Polyimide), PR(Photo Resist), Electrolyte for second-Li battery, Paste, EMS(Electro-Magnetic Interference Shielding), OPC(Organic Photo Conductor), Ink and highly functional engineering plastic, and are regarded as a truly worldwide resin manufacturer.
In the future, Cheil Industries Inc. will continue to pursue quality excellence and business innovation under the guideline of the Samsung Group's New management policy. We will stay in step with the rapidly-changing business environment by offering top quality products and services, globalizing and offering customer satisfaction. Cheil Industries Inc. is heading into the future as a true world player that contributors to local communities around the globe
Chemical Business at http://www.starex.co.kr
→ Hyundai Petrochemical 買い手
Honam Petrochemical and LG Chemical ：full ownership 希望
SK Corp ： other partnersとのshare 希望
→ Korea/ LG Chem and Honam Petrochemical
acquired Hyundai Petrochemical.
Korea's Honam, LG finalize acquisition of Hyundai Petchem
Hyundai Petrochemical Co., Ltd.
has achieved rapid industrial growth in the domestic
petrochemical industry since its inception in 1988.
Through leading edge technologies and visionary insights, Hyundai Petrochemical has become the premier consolidated petrochemical company in Korea. Hyundai's Daesan Petrochemical Complex, located in the western seaboard south of Seoul, maximizes efficiency and quality control by employing a comprehensive computer automation system that coordinates the entire production process.
From the Naphtha Cracking Center and throughout the production of monomers, polymers, synthetic resins and rubbers, the system requlates stringent quality control measures to provide products with the highest level of quality.
The Daesan Petrochemical Complex is strategically positioned in close proximity to the Hyundai Oil Refinery Co.,Ltd. to facilitate in the supply of base petroleum and to enjoy the wynergistic effects into our globalization strategy.
Furthermore, Hyundai Petrochemical leads the domestic petrochemical industry, a first for a domestic petrochemical company. As the leading and pioneering company in the production of petrochemicals and related technologies, Hyundai Petrochemical has been supplying the global market of over 50% of total production volume to over 60 countries worldwide.
Ws the future unfolds and offers new and exciting challenges, Hyundai Petrochemical will strengthen the investments in R&D to develop new value-added materials in fine chemistry to emerge in the 21st century as leader in the field of petrochemicals.
Korea SK Corp to join bidding for Hyundai Petrochemical
South Korean refiner and petrochemical producer SK Corp has expressed interest in bidding for financially troubled Hyundai Petrochemical Co, officials at SK said Friday. SK would join local Honam Petrochemical and LG Chemical, which are also lining up to place bids for the company. Hyundai Petrochemical has been on the selling block since it was moved out of the Hyundai industrial group last year and put under the supervision of its shareholders, led by Hanvit Bank. Earlier discussions by Hyundai with Japanese trading house Itochu Corp and European-based Borealis failed to produce a deal. Hanvit is expected to open a round of bidding for Hyundai "two to three months from now," the SK official said.
While Honam and LG appear to be interested in acquiring full ownership of Hyundai Petrochemical, SK Corp said it would be willing to share Hyundai's equity with other local or foreign partners. The partial or full acquisition would offer SK greater access to the local and overseas markets, as SK's refining and petrochemical complex in Ulsan on the southeastern coast would complement Hyundai's petrochemical complex at Daesan on the northwest coast, an SK source noted. SK would gain Hyundai's 1-mil mt/yr ethylene capacity in addition to its existing 730,000 mt/yr unit. SK believes an acquisition this year would be well timed. "The petrochemical market hit a bottom in 2001 and has been recovering ever since. We expect to see prices continue to recover into 2004," an SK source said.
2003/1/21 Financial Times
Korea/ LG Chem and Honam Petrochemical acquired Hyundai Petrochemical.
Hyundai Petrochemical, which was put up for sale in 1999 because of the size of the parent company's debts, has finally found a buyer. A dozen companies expressed an interest in the acquisition (including Koch Industries). Hyundai's main creditor finally chose to sell the company to a local consortium led by Honam Petrochemical and LG Chem for a reported $1.45 M(Billionの誤り）. LG Chem (the leading Korean chemicals group which also owns 40% of LG Petrochemical) acquired Hyundai Petrochemical's polyvinyl chloride business at end 2000 increasing its capacity from 550,000 to 750,000 tonnes/y. The acquisition of Hyundai gives LG Chem and Honam Petrochem 2 crackers (1 M tonnes/y capacity) as well as units with capacities of: 450,000 tonnes/y polypropylene; 650,000 tonnes/y polyethylene; 390,000 tonnes/y styrene; 145,000 tonnes/y butadiene; 300,000 tonnes/y benzene; and 375,000 tonnes/y ethylene glycol.
S.Korea Group Named in Hyundai Petro Sale
The main creditor bank for Hyundai Petrochemical Co Ltd named a South Korean consortium Monday as a preferred bidder for the cash-strapped company in a deal industry sources valued at around $1.45 billion.
The consortium led by Honam Petrochemical Co Ltd and LG Chem Ltd was chosen over a U.S.-based company, a spokesman for Woori Bank said.
Creditors of Hyundai, South Korea's second-largest ethylene producer by capacity, have been seeking a buyer since early this year and analysts had said the sale could transform the shape of the domestic petrochemical sector.
"We will sell 100 percent of Hyundai Petrochemical," said a source close to the deal, asking not to be named.
"We will sign a final contract early next year. The price will be above 1.73 trillion won ($1.45 billion) which local newspapers speculate," he told Reuters.
LG Chem, South Korea's largest chemical maker and a unit of the LG Group, owns a 40 percent stake in ethylene maker LG Petrochemical, the country's third biggest, followed by Honam Petrochemical.
Hyundai was spun off from the Hyundai Group in December 2001 after being rescued by creditors via a debt-to-equity swap. It had debts of around 2.7 trillion before the rescue.
The spokesman for Woori Bank said Kansas-based Koch Industries Inc was the runner-up bidder for Hyundai Petrochemical. He declined to reveal financial details of the bids.
"As Koch has no (ethylene) plant, it tries to get synergies from taking over Hyundai Petrochemical," the source said.
Koch is involved in diverse industries such as trading commodities and securities, operating manufacturing plants and refineries, and investing in new ventures and capital markets, its Web site show.
Ten 10 bidders initially showed interest in Hyundai Petrochemical.
Despite the news, LG Chem shares tumbled 7.7 percent to end at 40,600 won and Honam skidded 8.1 percent to 21,700, hurt by soaring crude oil prices, which raise costs for them.
The benchmark index plunged 4.47 percent in the last trading day of 2002, pounded by military tensions on the Korean peninsula and a raft of downbeat economic data. (US$1 = 1197.5 Won)
Koch Industries owns a diverse group of companies that exercise these capabilities on a global scale in core industries such as trading, petroleum, asphalt, natural gas, gas liquids, chemicals, plastics and fibers, chemical technology equipment, minerals, fertilizers, ranching, securities, and finance, as well as in other ventures and investments.
Hyosung adopted Oleflex propane dehydrogenation process of UOP, and started the DH plant operation commercially in 1991. This is the first commercially operated plant of this kind in the world, succeeding to the pilot plant size operation of DH unit in USA by UOP itself.
High purity polymer grade propylene can be produced through the catalyst packed reactors with Continues Catalyst Regeneration section. With the state of art Distributed Control System all process variables can be controlled automatically to maximize the efficiency.
Hyosung Corporation started the polypropylene business with product brand "TOPILENE" in April 1991, by introducing the HYPOL process technology from Mitsui Chemical Inc. of Japan. Soon after the start-up of the HYPOL PP plant, many new products were successfully launched on the market by applying many-years own know-how which was accumulated throughout previous synthetic fiber polymerization experiences.
New capacity was added in 1996, based on UNIPOL PP technology of Union Carbide Corporation of US. With the operation of UNIPOL PP plant, the whole product range of TOPILENE can be widened and become more customer specific, to bring Hyosung great competitiveness worldwide in scale-wise and quality-wise.
Hyosung Corporation keeps introducing new high value-added products in market with constant improvement and development since we well acknowledge the customer value and satisfaction is critical to our success in this limitless global competition era. We are leading Korean PP industry with the introduction of the fourth generation products such as HIPP and Butene Random Copolymer, and will grow along with the customers.
|PP-1 Process||PP-2 Process|
|Capacity||165,000 ton/yr||120,000 ton/yr||148,000 ton/yr|
|Licensed by||UOP (US)||MPC (Japan)||UCC (US)|
|Date of Starting||Sep. 1991||Apr. 1991||Dec. 1996|
Honam Petrochemical (Lotte Group) http://www.hpc.co.kr/eng/
→ ロッテ 57.3%
＊第一化学：三井化学 60.13%、三井物産 32.17%、新日本石油化学 7.7%
1973/11 三井石油化学、三井東圧化学、三井物産の３社、第一化学を設立 1974/6 日本石油化学、第一化学に資本参加 1976/3 第一化学、韓国の麗水石油化学と湖南石油化学を設立 当初は麗水石油化学 35% (ﾛｯﾃ80%）、第一化学 35%、一般株主 30% 2002/12 第一化学、湖南石油化学持株売却完了 2003/6 第一化学 解散
Chemnet Tokyo 2003/5/30 発表
（１）所 在 地 東京都千代田区 （２）代 表 者 富永紘一（当社専務取締役） （３）資 本 金 3,929百万円 （４）株主構成 当 社 60.13 ％ 三井物産
Korea Petrochemical Ind. Co http://www.kpic.co.kr/english/
Ever since its establishment in
Jun. Of 1970, Korea Petrochemical Ind. Co., Ltd has completed the
first polypropylene plant in the 1972 in the spirit of challenge
Through annual increase in its establishment, it has opened the new field of petrochemical industry on this land furnishing the productivity of polypropylene 350 thousand metric tons and high density polyethylene 270 thousand metric tons a year.
In leading the Korean petrochemical industry as the most specialized firm, it has supplied raw material needed in the production of industrial supplies of the vast fields of industry to the housewares and has taken on a major role in Korean petrochemical industry with technology renovation, priority in customer satisfaction, and unity and harmony among man kind as the business ideology.
Korea Petrochemical Ind. Co., Ltd, which has grown leading the Korean petrochemical business, is playing an important role in the heavy and chemical industry by producing basic chemicals in their Naphtha Cracking Center with the capacity of 340 thousand metric tons of ethylene per year.
By transferring the technology of Terpolymer and High Crystallinity Polypropylene with CHISSO, the Japanese firm in possession of the most latest technologies, it has built the conditions for high value added of its products.
Leading the Korean synthetic
resin industry, Korea Petrochemical Ind. Co., Ltd has completed
the Onsan Naphtha Cracking Center, the capacity of 340 thousand
metric tons per year by standard of ethylene in Nov. 1991.
It also self produces ethylene and propylene, the main materials of petrochemical, taking charge of not only stable operation activity but also production of basic chemical.
The Onsan plant of Korea Petrochemical Ind. Co., Ltd., adopting the vertical integration of bulk production system from raw materials to products, has distributed control system, energy reduction system and harbor facilities with the capacity to load and unload vessels up to 100 thousand metric tons, and designed up allowes for the flexibility in accordance with economic efficiency and the demand and supply of raw material through use of LPG, NGL, gas oil in substitution of the Naphtha main material.
The Ulsan plant, supplying 350 thousand metric tons of polypropylene and 270 thousand metric tons of high density polyethylene per year, is placed within the petrochemical industry complex and exhibits the largest productivity in the country.
Polypropylene and High Density Polyethylene have excellent material properties, and exhibit high preference in domestic, south east asia and other areas world wide Placed at the top of domestic market possession, the Ulsan plant alters the catalyst and operating conditions of the 8 production lines including swing operation of Polypropylene and High Density Polyethylene. Swing plant provides and supplies timely the various products demanded by the customers.
ＫＰＩＣの累積債務は 7,000億Ｗ (当時のレ−トで 900億円）で、前年の赤字は 546億Ｗ、９３年赤字は 1,000億Ｗと言われている。
同社は 1991 年に 4,500億Ｗをかけて 250千ｔ/年のエチレンクラッカ−を建設したが、これが経営悪化の要因となった。
1993/8/12 に丸紅が 41.59% の株を放棄し撤退した。
創業者一族 42% （従来 25%）
政府（財務部） 29% ( 17% )
ﾁｯｿｴﾝｼﾞﾆｱﾘﾝｸﾞ 14% ( 8%)
丸紅 0% （ 41.59％）
May 29, 2003 Dow Jones
Samsung General Chem,France's Atofina Sign $1.55B JV Deal
South Korea's Samsung General Chemical Co. (Q.SGC) said Wednesday it signed a final agreement with French chemical company Atofina to launch a $1.55 billion joint venture in South Korea.
The 50-50 joint venture - which will make petrochemical products such as ethylene, polyolefins and styrene monomer - is to begin operations in the third quarter, said Samsung in a statement.
"The joint venture will maximize the synergies by combining Samsung General Chemical's expertise in production technology and Atofina's advanced marketing and distribution network and capabilities," the Korean company said.
Samsung will contribute its assets, facilities and labor force to the new joint venture, while Atofina provides its existing network around the world, including in the U.S. and Europe.
"Atofina will benefit from the joint venture by directly accessing the Asian petrochemicals market, particularly China, the world's fastest growing petrochemical market...and Samsung General Chemical will be able to strengthen its marketing capabilities," said Samsung.
Samsung and Atofina signed a memorandum of understanding for the joint venture deal in December, the statement said.
Atofina is an affiliate of France's TotalFinaElf, the world's fifth-largest oil company, Samsung said.
Unlisted Samsung General Chemicals, which is an affiliate of South Korean conglomerate Samsung Group, has an annual production capacity of 650,000 tons of ethylene and 670,000 tons of polyolefins.
Atofina secures joint venture with Samsung GC May 27
Atofina, the chemicals branch of France's Total, Tuesday finalized its 50:50 joint venture with South Korea's Samsung General Chemicals an Atofina's spokesman confirmed Wednesday. The agreement was signed at Total's headquarters between Atofina's president and CEO Francois Cornelis and SGC's chief HS Ko, the spokesman said. The venture is valued at $1.55-bil, with the heart of the venture being the joint-operation of SGC's integrated 650,000 mt/yr ethylene complex in Daesan, southwest Seoul. The complex also houses a 670,000 mt/yr styrene unit, 500,000 mt/yr paraxylene and 670,000 mt/yr combined polyolefins unit.
Samsung, Atofina sign joint chemical venture
Samsung General Chemicals Co. signed an agreement with France-based Atofina yesterday to form an equal $1.55-billion chemical joint venture.
Atofina is the chemicals manufacturing subsidiary of Total Group of France.
Half the equity of Samsung, which is not yet publicly traded, will be handed over to Atofina for $775 million and the joint venture will be officially launched in August.
By attracting foreign investment, Samsung can ease pressure on its debt repayment obligations. The chemical firm has total liabilities of 1.4 trillion won ($1.16 billion).
In return, the deal will secure for Atofina a strategic base in Asia to enter China and other regional markets.
“The joint venture will maximize potential by combining Samsung General Chemicals’ expertise in production technology and Total Group’s advanced marketing and distribution network,” Samsung said in a statement yesterday.
Samsung has sought foreign investment since early 2000. The company held a board meeting on Tuesday to approve the creation of the joint venture.
“The joint venture’s chief executive will come from Samsung and its deputy chief executive from Atofina,” a Samsung official said.
“It will form a new six-member board with equal representation. Atofina’s investment will be spent in repaying Samsung’s debt and as capital for the joint venture.”
The new company will be named Samsung-Atofina.
Total Group was formed through the merger of Total, Fina and Elf and is the fourth-largest oil and gas company in the world.
Dow Jones Business News 2003/7/18
EU OKs Samsung and Total S.A $1.55 Billion JV
The European Union Commission Friday approved South Korean Samsung Group's $1.55 billion chemical 50-50 joint venture with France's Total S.A. (TOT).
The two companies are combing their chemicals subsidiary, Samsung Chemical and Altofina, so that Samsung can gain a better presence in Europe and Total in Asia.
Samsung "will maximize synergies by combining Samsung General Chemical's expertise in production technology and Atofina's advanced marketing and distribution network and capabilities," the South Korean company said. Total " will benefit from the joint venture by directly accessing the Asian petrochemicals market, particularly China, the world's fastest growing petrochemical market."
Samsung and Atofina signed a memorandum of understanding in December, the first such deal between a Korean and non-Korean chemical company, the statement said.
Atofina has about $18 billion of annual sales. Samsung General Chemicals has about $1.25 billion in annual sales.
Some of the leading rivals in the industry such as ExxonMobil Co , BP PLC (BP) and Royal Dutch/Shell Group (RD, SC) have already made or are planning future investments in the Asian market.
The deal was approved under the Commission's simplified antitrust procedure. This clears mergers or acquisitions after one month if no objections are raised by third parties.
EU 2003/7/18 http://europa.eu.int/
Commission clears Samsung's and Total Holding's acquisition of Samsung Atofina Ltd
The European Commission has cleared the acquisition of joint control of the undertaking Samsung Atofina Ltd. ("JV"), Korea, by Samsung General Chemicals Co. Ltd. ("Samsung"), Korea, belonging to the Samsung Group and Total Holdings UK Ltd. ("Total Holdings") belonging to the Total Group ("Total"), France. Samsung Atofina is active in the manufacture of basic petrochemical products and commodity polymers. Samsung is incorporated under the laws of Korea and belongs to the Samsung Group. It is engaged in the manufacture of basic petrochemical products and commodity polymers. Total Holdings is a subsidiary of Total Holdings Europe Ltd. which belongs to the Total Group. Total is involved in oil exploration, development, refining, marketing, trading, shipping and production of base chemicals and commodity polymers. (The operation, notified 18 June 2003, was examined under the simplified merger review procedure)
Chemnet Tokyo 2003/8/4 Homepage
サムスン・アトフィナ(旧三星総合化学)は大山に石化コンビナートを持ち、実質能力はエチレン63万トン、プロピレン32万トン、LDPE 10万トン、lLDPE 125千トン、HDPE 175千トン、EG 11万トン、SM 67万トン、PP 22万トンなど。ほかにBPとのJVで三星石油化学(PTA 140万トン)、三星BP化学(酢酸、酢ビ)をもつ。
August 4, 2002 Samsung-Atofina http://www.samsungatofina.com/en/SilverStream/Pages/index.html
Samsung, Atofina launch chemical
Samsung General Chemicals Co. and Atofina, the chemical branch of the French Group TotalFinaElf, launched a 50-50 joint venture, called Samsung-Atofina, yesterday.
Samsung officials said the new entity is designed to boost competitiveness through a marketing and sales alliance as well as a sound financial structure.
The two companies signed a memorandum of understanding in December. It is the first time that a foreign chemical company has participated in a fully integrated petrochemical joint venture in Korea.
"The joint venture will secure its market leading position through economies of scale in production and sales as well as optimize its business portfolio through the integration of technical expertise and advanced technologies," Paik Seung-chun , a Samsung spokesman, said.
This will enable the joint venture to fortify the already strong position of Samsung General Chemicals in Asia including the Chinese market, he added.
This project will also provide Atofina with a major manufacturing base in Asia and reinforce its marketing position in a rapidly growing market in partnership with a leading regional player.
The combined production capacities of Samsung and Atofina are 3.65 million tons of ethylene, 4.57 million tons of polyolefins and 1.95 million tons of styrene monomer .
The joint venture will be well positioned in regional and global chemical markets with a substantial marketing capacity, in line with global petrochemical industry trends, Paik said.
2003-8-7 Asia Chemical Weekly
Atofina grasps opportunity for Asia growth
Atofina has to prove now that it can reap real rewards from its investment in South Korea’s Samsung and make the gains it wants from more active participation in China’s petrochemicals markets.
This should be a win-win situation, given the regional petrochemicals growth projections. Some have said that the French oil major has spent too much already on its new Asian hub but as the venture begins to get off the ground, the partners can be expected to aim to prove that assertion wrong.
Market tightness will work in Atofina’s favour and make 2005 target returns (chemicals 2005 target return on average capital employed - ROACE - is 14%) more achievable but the cracker and other plants at the Daesan site this year have been running at full capacity. Atofina’s financial goals necessarily have to be tough enough to drive achievement at the business level and reaching them in South Korea will largely depend on how chemicals management handles the new venture as a driving force for growth.
Prior to closing and regulatory approval last month, Samsung at Daesan was profitable. The upside potential was high and the estimate was that the operation could be producing a ROACE of between 14% and 15% in mid-cycle conditions.
It is fine doing more business in China and in wider Asia but profitable expansion is another matter. Yet this investment in the pits of the cycle, and cracker investment in the Middle East - Atofina has a growing interest in making ethylene in Qatar - sets the company up in terms of its ability to service growing petrochemical markets in China.
China will grow significantly as an importer of petrochemicals over the next few years and all the big petrochemical players are jockeying for positions in the market. A recent study, from consultants Nexant ChemSystems and Sinodata, gives a flavour of the wider situation and suggests that China’s appetite for polyolefins alone is voracious. Domestic supply is in no way able to keep up, putting the onus increasingly on imports. By 2010, China is expected to dominate and account for something like 45% of globally traded polyolefins.
Atofina has put $755m (Euro671m) into the $1.55bn joint venture, and Samsung the balance and its Daesan cracker, petrochemicals plants and workforce. Estimates suggest the amount paid is close to replacement cost of the facilities at the site. Currently, Daesan has a 650 000 tonne/year naphtha cracker, a condensate splitter, as well as 670 000 tonne/year of styrene, 400 000 tonne/year of polyethylene (PE) and 500 000 tonne/year of paraxylene (PX) capacity. Polyolefins capacity at the site is 670 000 tonne/year.
There are already plans to lift capacity of the cracker, which should be achieved relatively cost effectively by debottlenecking and retrofitting, to 1m tonne/year. The additional ethylene will feed expansions downstream. Atofina also wants to expand polystyrene (PS) capacity in Asia and has the option of lifting capacity at a recently acquired facility at Sanshui or building a new plant elsewhere. Given the Korean investment, Atofina has broadened its PS feedstock options. Styrene from Daesan is currently sold under contract and on the merchant market, mainly in South Korea.
The Samsung venture gives Atofina a good platform for growth in the region and a springboard into the Chinese market, where it has looked closely at its options. A cracker project is still on the cards but probably a long way off and in the meantime, downstream partnerships and ventures are the most likely route to growth. Effective management of these will be vital and the company will be looking to broaden its expertise to do much more business in the region.
Samsung Petchem to expand PTA capacity by end-2004 to 1.6-mil mt
South Korea's Samsung Petrochemical Co Ltd plans to boost its production capacity of purified terephthalic acid by the end of the year to 1.6-mil mt, up 200,000 mt/yr from its current capacity, the company announced during a press conference on Monday.
Samsung also planned to increase annual sales to over Won 1 trillion ($866-mil) during the year. "We expect to achieve the sales goal of Won 1 trillion this year with the new production facilities,"
Samsung Petrochemical President Huh Tae-hak told a press conference to mark the company's 30th founding anniversary. Samsung Petrochemical is run by SPC, a joint venture between Samsung Group and British BP which have a 47.4% stake, respectively.
October.26, 2005 Samsung Total Petrochemicals
Samsung Total, Huge ‘Extension Investment’
- NCC・SM Extension and PP Factory
Establishment…Invest 550 billion won by 2007 600億円
- Initiative in main products, ‘Selection and concentration’, Energy-saving and expansion of high 550 value-added products
- Acquiring future growth engine with huge reinvestment.. Presenting successful joint-venture model
Samsung Total(CEO Hong-shik Goh) is initiating new investment of 550 billion won in total to Daesan petroleum chemical complex, South Choongchung, for its world-class competitiveness through complex rationalization.
This investment by Samsung Total is implemented for main products according to its ‘selection and concentration’ strategy. The core plan of the investment includes to increase 200,000 ton of ethylene, 230,000 ton of propylene, and 200,000 ton of SM(Styrene monomer) for NCC(naphtha decomposition factory) and to establish a new factory which produces 300,000 ton of PP(polypropylene).
When Samsung Total possesses production capacity of 830,000 ton of ethylene, 550,00 ton propylene, 870,000 ton SM, and 570,000 ton PP after 2007 of investment completion, it will be one of the best petroleum chemical complex in the world.
[See Table 1 and 2]
[Table 1] New Extension, Investment Plan for Daesan Youhwa Complex of Samsung Total
|Expected completion year||Yearly
|NCC||Fist half of 2007|
|-Propylene||320,000||230,000||Fist half of 2007||550,000|
|SM||670,000||200,000||Second half of 2007||870,000|
[Table 2]Product Purpose for Newly- Factory
|Ethylene||Basic material for Polyethylene, synthesized resin, and Ethyleneglycol of synthesized textile material|
|Propylene||Basic material for polypropylene of synthesized resin|
|SM (Styrene Monomer)||Material for PS, ABS, which is exterior/interior parts of electric/electronic products and automobile|
(PP , Polypropylene)
|Exterior/interior parts of electric/electronic products and automobile|
On this investment plan,
one concerned with Samsung Total says, “This investment purposes to
respond quickly to the rapidly changing petroleum chemical market
of Asia and improve not only quality competitiveness but also
cost advantage through complex rationalization and the
next-generation new technology.”
For NCC, a process that converts added value from low to high will be introduced. Also, a new technology integrating two factories to one will be applied for a SM factory to improve product quality, productivity, and energy-saving as well. In addition, the PP factory to be established is expected to foster significantly product quality with upgraded new technology compared to previous facilities.
Samsung Total induces huge investment again this time following the completion in last July with extending 100,000 ton of PX by investing 50 billion won, since it established a joint venture of 50 to 50 share structure by inducing about 100 billion won (800 million dollars) from France Total Group in 2003.
Entering upon the 2nd year of joint venture, Samsung Total, the first comprehensive petroleum chemical joint venture in Korea, is in the lime light as a successful joint venture model, as it is pursuing reinvestment for strong competitiveness based on new corporate culture and synergy effect created by the coordination of Samsung and Total.
Meanwhile, Samsung Total is planning to obtain a superior position as a world-class chemical company by successfully completing both this investment and 「Upgrade Samsung Total 330」, which is a progressive management innovation movement to save the cost of 250 billion won for 3 years.
Korea Samsung Total to expand benzene,PX units by mid-2009
South Korea's Samsung
Total Petrochemicals Company (SPC) is looking to expand its
benzene capacity at its No 2 aromatics reformer by 90,000 mt/year
by mid-2009, company sources said Monday. The company's No 2
aromatics reformer is located at Daesan. According to the
sources, the company was in the midst of planning its expansion.
SPC No 2 aromatics reformer--which includes a toluene
disproportionation unit, is currently capable of producing
350,000mt of benzene yearly.
Alongside with the expansion of its No 2 aromatics reformer, the company's current 600,000 mt/year paraxylene plant will also be increased by 270,000 mt/year to 870,000 mt/year. SPC's PX expansion plans is in line with the increase in the capacity of its No 2 aromatics reformer. After boosting its reformer capacity, the company will have more isomer-grade mixed xylenes available. The estimated startup timeline for SPC's PX expansion is also in the middle of 2009.
The sources added that after SPC's No 2 aromatics reformer expansion was completed, the benzene output will be fully channeled into its expanded styrene monomer plant. Following the company's increase of its SM plant capacity by 200,000 mt/year to 840,000 mt/year at the end of June next year, SPC will be short of almost 6,000mt of benzene each month until mid-2009, when the expansion of its No 2 aromatics reformer was completed.
Meanwhile, the company had not yet decided on the proportion of contract and spot volumes which it will allocate for its additional PX output. "We are still in the midst of planning and monitoring market developments," said a company source.
Korea's Samsung Total commits new SM capacity to term contracts
South Korea's Samsung Total plans to sell all additional output in May 2007 from boosting its styrene monomer nameplate capacity at Daesan by 130,000 mt/year, to existing term contract buyers, a source close to the firm said Monday.
The company planned to raise its styrene capacity to 800,000 mt/year through debottlenecking. Its two plants in Daesan would be shut down from April 15 for 45 days for the project.
Samsung Total's term contract customers include BASF Korea, Cheil Industries, Chi Mei Corp, Heqiao Chemical and Wuxi Xingda.
Platts 2007/8/20 Samsung
Total's new OCU produces on-spec propylene
Korea's Samsung Total to complete Daesan metathesis unit Aug 2008
South Korea's Samsung Total plans to complete the new 185,000 mt/year （→200,000 mt/year）metathesis unit located at its Daesan naphtha cracker complex in August next year, a company source said Monday.
Once on-stream, the company's term ethylene exports would likely be reduced as a significant portion of the cracker's output would need to be channeled to the new metathesis unit, the source explained.
Samsung Total's Daesan cracker is capable of producing 800,000 mt of ethylene yearly, and the company currently supplies 9,000 mt/month of ethylene to customers on term supply contracts with Japanese traders. "The volume might be the same in the first half of next year, but exports would likely be reduced from the second," the source said.
Meanwhile, Samsung Total has delayed the startup of its new polypropylene plant, also located at Daesan, to the first half of October from the end of September, Platts reported previously.
The PP plant is currently undergoing an expansion process that will double its production capacity to capacity to around 540,000 mt/year, Platts reported early August.
Samsung Total's new OCU produces on-spec propylene for first time
Petrochemicals has started to produce on-spec propylene from its
new olefins conversion unit at Daesan, a company source said
Thursday. The plant was running at 45% of its 200,000 mt/year capacity on Thursday.
"Since we are just using C4 from our own plant, the operating rates are still at 45%," the source explained.
The plant will eventually use ethylene feed from Samsung Total's steam cracker, while C4 distillate and butylene will be supplied via pipeline by Lotte Daesan Petrochemicals and LG Chem.
Samsung Total currently buys about 50,000 mt/year of propylene via pipeline from Lotte Daesan and LG Chem, which it uses to produce polypropylene. The company can produce 570,000 mt/year of PP through three plants. When the OCU is fully onstream Samsung Total may be able sell about 20,000 mt/year of propylene instead.
The company is entitled to 100,000 mt/year or half of the OCU's propylene, and will channel the rest to Lotte Daesan and LG Chem as part of a three-way tolling agreement.
Asia's propylene FOB Korea price benchmark did not react immediately to Samsung Total's new production capacity, a survey by Platts showed. The benchmark was range bound at $1,610/mt as of 0815 GMT, for cargoes to be loaded 20 to 40 days out, or between August 27 and September 16. The price benchmark lost $70/mt last week due to lackluster demand for multiple derivative products such as polypropylene, acrylonitrile, acrylic acid and phenol.