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Hyundai Oilbank to start work on new heavy-oil plant
November 24, 2008 SEOUL -- Hyundai Oilbank Corp., South Korea's fourth-largest refiner, said Monday it has signed a 1.68 trillion won (US$1.1 billion) deal with two local builders to construct a second processing plant by July 2011.
The plant, which will process 52,000 barrels of heavy oil into transportation fuel a day, will be built in Daesan, a coastal city 137 kilometers southwest of Seoul, Hyundai Oilbank said in a statement.The two local builders are Hyundai Engineering & Construction Co. and Daelim Industrial Co.
If completed, the company's heavy-oil processing capacity will be raised to 116,000 barrels a day from the current 64,000 barrels, increasing the proportion of heavy oil processing units in its refining facilities to about 30 percent from the current 17.4 percent.
The company can process 390,000 barrels of crude a day into gasoline and other products.
In October, Hyundai Oilbank raised 1.2 trillion won via a syndicated loan that was arranged by state-run Korea Development Bank and five other lenders to build the plant.
The loan is payable in eight years with a four-year grace period.
© 2008 Yonhap News Agency.