Advanced Petrochemical Company has signed a joint venture (JV) agreement between SK Advanced Company and PolyMirae Company to set up a polypropylene plant in South Korea with a production capacity of 400,000 metric tonnes per annum. The estimated total investment will reach around $420 million, which will be financed with 60% debt and 40% equity, Advanced Petrochemical said in a filing to the Saudi Stock Exchange (Tadawul). The Saudi petrochemical company would own a 49.99% stake in the new joint venture, according to the filing.

SK Advanced is in itelf a JV company in South Korea, in which Advanced Petrochemical holds a 30% stake, along with SK Gas and Petrochemical Industries Company (PIC).

The new joint venture is projected to commence construction of the plant in January 2019, and to begin commercial operations from 2021. SK Advanced will supply the JVe with propylene on a long-term basis.

SK Advanced operates a propane dehydrogenation (PDH) plant in South Korea since 2016 with a production capacity of 600,000 metric tonnes per annum of Propylene, while PolyMirae currently operates four PP Spheripol production lines in South Korea with a total capacity of 700,000 metric tonnes per annum.