LG Chem Stops Production of 'Rice of Petrochemicals'... Yeosu NCC Plant 2 Shutdown

Running the factory would actually result in losses
Considering reassignment of workforce to other factories
Interview schedule and restart date under review

It was confirmed on the 23rd that LG Chem's Yeosu, Jeonnam naphtha cracking plant (NCC) Plant 2 recently stopped operating. This is because they are considering reallocating the workforce to other plants. NCC is a key facility that produces basic petrochemical feedstocks such as ethylene. Ethylene is called the "rice of petrochemicals."

LG Chem is reportedly about to begin individual interviews with employees soon. The interview schedule has not yet been finalized. Although the regular maintenance of Plant 2 was recently completed, the plant remains shut down.

In the past, there have been shutdowns or workforce reallocations depending on market conditions. Currently, running the plant would actually result in losses. The ethylene spread (margin), a representative profitability indicator in petrochemicals, was $175 as of the 22nd. Usually, $300 is considered the breakeven point. This means that the plant shutdown may continue until profitability improves.

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