Korean petrochemical makers to face hard times: report

SEOUL, Jan. 8 (Yonhap) -- South Korea's petrochemical producers are expected to
undergo tough times this year due to slumping exports and slowing global demand,
a trade association said Thursday.
Exports of petrochemicals are predicted to fall 3.1 percent to US$31.2 billion
this year from 2008, while imports will drop 4.1 percent to $11.7 billion, the
Korea Petrochemical Industry Association said.
Local petrochemical manufactures are forecast to post a trade surplus of $19.5
billion this year, it added.
The association attributed the gloomy outlook to a drop in global demand and
stiff competition from rivals in the Middle East and China.
However, the production of petrochemicals in South Korea is forecast to edge up
in 2009 on the back of an increased number of plants completed last year, it
said.
According to industry sources, petrochemical makers are pushing to downsize their
business operations to contend with a sharp fall in demand amid a global economic
downturn.
Local petrochemical companies, including LG Chem Ltd. and SK Chemicals Co., are
trying to streamline their operations and sell their subsidiaries to create
synergy, the sources said.
ksnam@yna.co.kr
(END)