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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyosung Chemical is reportedly considering withdrawing its plant in Daejeon due to the sluggish petrochemical industry.
According to the industry on the 7th, Hyosung Chemical has been in the red for seven consecutive quarters. The second-quarter operating loss, which was announced on the 31st of last month, was also 103.3 billion won, down 128.13% from the previous quarter and 51.69% from the previous year.
Hyosung Chemical's deficit is due to weak demand in the petrochemical sector, which has continued since last year. China, the largest consumer of petrochemicals, is also falling short of expectations for a recovery in consumption even during the opening (resumption of economic activities) earlier this year.
In addition, China's petrochemical production capacity has already surpassed its own demand, and the Chinese government is signaling a massive expansion of related facilities on concerns that the supply of petrochemicals could be disrupted due to the deepening U.S.-China conflict.
The industry analyzes that this is why Hyosung Chemical is considering withdrawing its Daejeon plant.
Hyosung Chemical is reportedly considering withdrawing its dual nylon film plants in Daejeon and selling its sites, and maintaining production lines at its plants in Gumi and Quzhou, China, respectively.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
