SKC (CEO: Park Jang Suk) has licensed an advanced manufacturing method from two German companies - Degussa and Uhde – that utilizes Hydrogen Peroxide (H2O2) to produce Propylene Oxide (PO). A license agreement ceremony was held on May 10, 2006 between the three companies. SKC will be adopting this new method for the first time in the world in its new PO plant under construction in Ulsan. After the plant is completed in 2007, it will have an annual production capacity of 100,000 tons and become fully operational in 2008.

PO is a key ingredient used to make automobile interiors, heat insulation materials, synthetic resins, and paints. The market for PO racks up steady growth of over 5% and domestic demand is forecasted to grow at a healthy pace. Domestic demand for PO outstrips the production capabilities of SKC so many domestic manufacturers rely on imports. When SKC’s new plant is completed, it will be able to capture a larger share of domestic demand, which currently relies on 160 billion won worth of imports. 

The adoption of this revolutionary manufacturing method will allow SKC to improve its competitiveness and satisfy domestic demand. In addition, SKC will continue to improve its competitiveness in core national industries such as polyol, propylene glycol (PG) and other PO-related products.