China Chemical Reporter 2003^31(2003/10)

Huvis of Korea Constructs 600 000 T/A PTA Plant

Huvis of Korea, a leading enterprise in the Korean polyester sector, will construct a 600 000 t/a PTA plant in Zigong, Sichuan.
Huvis of Korea and Sichuan Polyester Co., Ltd. jointly established
Sichuan Huvis Chemical Fiber Co., Ltd. in Zigong in December 2002. The PTA project to be constructed by the Korean company alone is an upstream project matched to the polyester project. The annual sales revenue of the PTA project is expected to be US$450 million. After the completion of the project, not only the demand in Sichuan Huvis Chemical Fiber Co., Ltd. and Sichuan Polyester Co., Ltd. but also the demand in other domestic producers can be satisfied.
The 220 000 t/a polyester staple fiber project of Sichuan Huvis Chemical Fiber Co., Ltd. started construction in Zigong
on Jan. 6, 2003 and will be completed and put on stream in August 2004.

2003/2 SK

Huvis Establishes Its First Overseas Corporation by Constructing 22,000-ton Capacity Polyester Staple Fiber Plant in China

Huvis, Koreafs first domestic, private and self-governing company that specializes in polyester, has recently expanded its scope and established its first international corporation in Zigong City, Sichuan Province, China.

Named Sichuan-Huvis Chemical Synthetic Fibers Ltd., the new company will have a $90-million plant that produces polyester staple fiber. Once the construction is completed, the plant will cover an area of 50,000 pyong (1.8 million sq. ft.) and have an annual production capacity of 22,000 tons.

In leading up to the construction of the plant, Huvis has signed an agreement to establish a joint venture with Sichuan Polyester Co., Ltd. in December 2001, and established Sichuan-Huvis Chemical Synthetic Fibers Ltd.
Huvis owns 95 percent and Sichuan Polyester owns 5 percent of the new company.

Huvis itself is relatively a new company. It was established in November 2000 by
merging the polyester business divisions of Samyang Co. and SK Chemicals. For the past 30 years, these two companies have been leading Koreafs polyester industry, especially in the field of synthetic fiber and polymer fiber manufacturing technologies.
f main business is centered around three sectors: polyester staple fiber, polyester filament yarn, and polyester chip. Currently Huvis is the largest producer of polyester staple fiber in Korea, with a daily production capacity of 1,100 tons.

f new polyester staple fiber plant in Zigong City is expected to begin production in July 2004.
The company held a groundbreaking ceremony on Jan. 6, with attendance of over 200 executives and officials, including SK Group Chairman Kil-seung Son, Samyang Vice Chairman Yoon Kim, and Huvis President Min-ho Cho.
Among many factors, Huvis decided to build the new plant due to the steady growth in demand for polyester staple fiber, to acquire an advantageous position in the giant Chinese market, reduce cost, and increase quality. Through this development and the company
fs globalization strategy, Huvis will be able to expand its competitiveness internationally.
According to Huvis, the plant will also become most technologically advanced plant in China. This is in line with the company
fs plans of upgrading the plant by 2005, with an annual production capacity of 50,000 tons, making it the largest polyester staple fiber plant in China. By the second half of 2004, after the completion of the plant, Huvis will become the largest polyester staple fiber producer in the world, with a total annual production capacity of 60,000 tons.