The hottest SK has found a new way in China and in

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Sk found a new way in China and invested tens of millions of dollars in solvents

on November 23, BP announced in Guangzhou that it had jointly established a "PetroChina BP joint venture" with PetroChina to engage in the retail business of refined oil products; In early November, Sinopec has established similar retail joint ventures for refined oil products with shell and BP in Jiangsu and Zhejiang respectively - unlike international giants who have dabbled in refined oil products, SK Zhushi society, the leading enterprise of Sinopec Asia, locked its first "ten million dollar" investment project in China in the "solvent" market, avoiding the positive edge of international giants and opening a new path

SK invests tens of millions of dollars in solvents

November 26, Shanghai, Jing

SK Co., Ltd., a leading enterprise in the Asian petrochemical industry, announced in Shanghai that it would establish a joint venture with China National Petroleum and Chemical Corporation (hereinafter referred to as Sinopec) in Shanghai to produce a series of de aromatics solvent products, with an estimated total investment of US $26.5 million. At the signing ceremony, Jin Zhiheng, head of the chemical division of SK Co., Ltd., and Mr. Jiang Zhenghong, general manager of Shanghai Gaoqiao Petrochemical Company, jointly signed a cooperation agreement

According to Jin Zhiheng, the investment project has been prepared since February 2002. After a series of preparatory work such as the determination of Chinese partners and market research, SK signed a letter of intent with Sinopec in November 2002. In August 2003, SK submitted a feasibility analysis report and approval application to Sinopec. On November 26, sk officially signed a joint venture, which is expected to be completed and put into production in the second half of 2005

it is reported that the newly established joint venture is a solvent production company integrating production and marketing. Its plant site is located in Shanghai Gaoqiao Chemical Plant, with a total area of 48000 square meters and an annual output of 60000 tons. It is mainly sold in East China, where the solvent market has great potential. Mr. Jin Zhiheng said that according to the agreement reached by both parties, the cooperation mode between them is "SK provides production technology and is responsible for market research, and the production raw materials are provided by Shanghai Gaoqiao Petrochemical Company, a major supplier of Sinopec." Jin Zhiheng confidently pointed out that after the establishment of the joint venture, the world-class production line and SK's unique production technology and product application technology will make the company a rising star in the domestic solvent Market in a short time

"solvent expert" SK "blazes a new trail"

industry experts told that solvent oil products are one of the five major categories of petroleum products, which are closely related to people's clothing, food, housing and transportation, and their application fields are also expanding. Among them, coating solvent oil (commonly known as paint solvent oil) is the most widely used. In edible oil, printing ink, leather, pesticides, pesticides, the thermistor of dynamic magnetic water temperature meter sensor will increase with the temperature, rubber Cosmetics, spices, chemical polymerization, medicine and cleaning of electronic components of integrated circuits are also widely used. The world consumes more than 20MT of solvent oil products every year (of which petroleum solvent oil accounts for half), and the annual output of petroleum solvent oil in China is about 2Mt

today, with the vigorous development of related industries, the scale and growth rate of China's solvent market are becoming larger and larger. The demand for solvents in 2003 has reached 3million tons, three times that of South Korea. Therefore, the huge market potential in China, especially in East China, and the relatively low cost and investment provide a favorable basis for SK to enter the Chinese market

in fact, as the oldest solvent supplier in South Korea, as early as 1972, since the establishment of the first naphtha cracking plant in South Korea, the chemical industry of SK Co., Ltd. has been the mainstay of South Korea's industrial development, supplying essential raw and by-products to all industrial fields, ranging from high-end materials in the automotive, electronic and communication fields to paint, stationery, contact lenses, cosmetics, Washing powder and other household goods. By 2003, SK Co., Ltd. had sold 500000 tons of solvents, produced 85 kinds of solvent products, formed a diverse and rich product group, and has grown into a leading solvent professional enterprise in South Korea

however, with the limited solvent Market in South Korea and the increasingly fierce competitive environment, SK found that they must "devote themselves to exploring foreign markets and strive to strengthen their international competitiveness in the solvent field". Whether the technical parameters meet the requirements of national standards can be referred to 1 or 2:. In fact, SK has been doing this for a long time. And its step-by-step "operation mode" in the Chinese market has followed the above development ideas

SK's partner Shanghai Gaoqiao Petrochemical Company, a subsidiary of Sinopec, has been pursuing and implementing high added value in the field of precision chemistry and petroleum products, and introduced the diversification strategy of the newly established world plastics Committee (WPC), which is not in line with SK's China strategy. Moreover, Shanghai Gaoqiao Petrochemical Company is located in Shanghai, and the solvent base Market in the surrounding areas is quite developed. It has ideal market and logistics competitive advantages, and is the best stronghold for the development of solvent industry. According to the plan, after the establishment of the company, it will mainly produce advanced environmental protection solvents for aromatics removal with fast growth and high unit gross profit. Its products will be used in China's 2008 Olympic Games, 2010 WorldExpo and other projects to meet the growing needs of China's environmental protection industry. Through the implementation of this project, SK will successfully establish a solvent production and marketing base in China to promote the steady and rapid development of the domestic market

China is becoming the largest overseas market of SK

at the same time, under the adverse situation of domestic economic stagnation and substantial reduction of domestic demand in South Korea, South Korea SK Co., Ltd. continues to maintain a sustainable development momentum. According to the financial report of SK in the third quarter, its quarterly sales were $3.727 billion (4472.8 billion won), and its operating profit was $346 million (415.6 billion won), an increase of 49% and 76% respectively compared with the same period last year. From January 1 to September 30, 2004, SK's cumulative sales were US $10.365 billion (12438.1 billion won), and its cumulative operating profit was US $970 million (11642 billion won). Sk Co., Ltd. said that because the prices of gasoline, diesel and aviation oil were much higher than the cost price of crude oil, and accompanied by the increase in oil exports to China, their third quarter profit increased by 15 times

in fact, the main reason why SK Co., Ltd. still achieved good performance despite the continuous decline of the domestic economy is the growth of overseas sales centered on China. Among the sales of SK Co., Ltd. in the third quarter of US $3.727 billion, US $1.77 billion was the export revenue of petroleum, chemical industry, lubricants and other industries. This export performance increased by 71% compared with the export performance of US $1 billion (1.2 trillion won) in the same period last year. The growth of export performance comes from the substantial growth of exports of petroleum, chemical, lubricating oil, asphalt and other products to China. While the export to China has improved, SK's oil development department, which is responsible for the development of overseas oil fields, has also begun to develop in the camiceya mining area in Peru since last August. Under the situation of high international oil prices, sales and operating profits increased by 262% and 247% respectively compared with the same period last year, setting a record of US $63.08 million (75.7 billion won) and US $44 million (52.8 billion won). The sales growth of overseas departments also played a great role in achieving the performance of SK Co., Ltd. in the third quarter

in view of the increasingly important position of the Chinese market in its global strategy, SK Co., Ltd. increased its capital by US $30million in China and established SK (China) Investment Co., Ltd. on October 28, 2004. In particular, in order to meet China's huge demand for chemical and petroleum products, SK plans to increase the marketing and distribution of its chemical and petroleum products. According to the information recorded by SK to the Korean stock exchange for Tier 1 suppliers and OEM manufacturers, with the construction of more oil storage facilities along the coast of China, SK plans to increase its current annual sales in China of $2.3 billion to $4.5 billion by 2010. Sk spokesman said that in the next five years, China will become SK's largest overseas market

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