【Overseas News】Shipping traffic in the Strait of Hormuz has sharply declined! South Korea approves the reorganization of Liuzhi Petrochemical; Italy shuts down the PE plant

International News Brief

Feedstock News – South Korea Approves Yeosu Petrochemical Restructuring and Commits USD 472 Million in Support to Address the Industry Downcycle

The South Korean government has approved a major petrochemical restructuring project in Yeosu, involving YNCC (Yeochun NCC), Lotte Chemical, Hanwha Solutions, and DL Chemical. The government has pledged more than KRW 700 billion (approximately USD 472 million) in financial support.

On July 22, South Korea's Ministry of Trade, Industry and Energy announced that it had approved the final restructuring plans submitted by the four companies. This marks the country's second petrochemical restructuring initiative, following the earlier approval of the Daesan project.

Under the restructuring plan, Hanwha Solutions and DL Chemical will contribute their downstream polyethylene (PE) businesses to YNCC, while Lotte Chemical will spin off its Yeosu naphtha cracker center and basic petrochemical operations before merging them into YNCC to establish a new integrated operating entity.

As part of the restructuring, two naphtha cracking units at YNCC will be permanently shut down, removing a combined ethylene production capacity of 1.39 million metric tons per year.

Plant Update – Versalis Shuts Down Brindisi Polyethylene Plant in Italy

Versalis, the chemical subsidiary of Eni, confirmed on July 21 via email to S&P Global Commodity Insights (Platts)that it has permanently shut down its polyethylene (PE) production facility in Brindisi, Italy, placing the plant into preservation and maintenance mode.

According to the company, the shutdown is being implemented in accordance with the framework agreement signed with Italy's Ministry of Enterprises and Made in Italy on March 10, 2025.

S&P Global data shows that the facility has an annual production capacity of 249,000 metric tons of linear low-density polyethylene (LLDPE) and 279,000 metric tons of high-density polyethylene (HDPE).

Local industry reports indicate that the agreement includes conditions related to the development of a stationary battery energy storage system (BESS) project, which has been one of the key factors enabling the plant closure.

Building Materials News – Europe's Leading PET Producer to Reduce Capacity Utilization Starting in August

Neo Group, one of Europe's leading producers of polyethylene terephthalate (PET), has officially announced a capacity adjustment plan.

The company's flagship PET manufacturing facility will reduce operating rates starting in August, representing a proactive move to scale back production capacity in response to current market conditions.

Building Materials News – INEOS Styrolution Launches Lustran® 532 MABS for Premium Furniture Edgebanding

INEOS Styrolution has introduced Lustran® 532, a methyl methacrylate-acrylonitrile-butadiene-styrene (MABS)grade, to Monguzzi, an Italian manufacturer of furniture edgebanding. Edgebanding is used in furniture production to provide durable, seamless edge finishes that match the surface of panels and components.

According to the polymer producer, Lustran® 532 offers excellent processability, high flowability, and outstanding dimensional stability. Its consistent base color makes it well suited for self-coloring applications, enabling efficient extrusion processing while ensuring a uniform appearance.

The material delivers consistent aesthetics across white, black, and digitally printed edgebanding products. While maintaining an excellent surface finish, Lustran® 532 also provides customers with greater flexibility in color, finish, and texture design, making it an ideal solution for premium furniture edgebanding applications.

Incident Update – Abnormal Chemical Reaction Reported in Styrene Monomer Storage Tank at Major Chemical Producer

Brazilian petrochemical company Videolar-Innova S/A (Innova) has released an official statement regarding an abnormal chemical reaction that occurred inside a styrene monomer storage tank at its Unit IV (petrochemical storage area) located in the Manaus Industrial District on the afternoon of July 15.

Following the incident, the company immediately deployed its in-house emergency response and firefighting team to contain the situation and simultaneously requested assistance from the Amazonas State Military Fire Department (CBMAM). Multiple emergency response teams worked together to cool the storage tank, monitor gas concentrations, and establish a safety perimeter around the affected area.

In its official statement, Innova confirmed that the incident resulted in no casualties or injuries, with no workers or emergency responders harmed during the response.

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