Hanwha TotalEnergies Petrochemical

Hanwha TotalEnergies Petrochemical is a South Korean petrochemical producer headquartered in Daesan, Seosan, in South Chungcheong Province. It operates as a 50–50 joint venture between Hanwha Group and France-based TotalEnergies, combining Hanwha's industrial and chemical operations in South Korea with TotalEnergies' international refining and chemicals expertise. The company is centered on a large integrated complex at Daesan, one of South Korea's major petrochemical production locations. The business began in May 1988 as Samsung General Chemicals, a subsidiary of Samsung Group. Construction of the Daesan petrochemical complex started in November 1989, and the facility began operating in September 1991. During the 1990s, the company progressively added production capabilities, including composite polypropylene, styrene, aromatics, purified terephthalic acid and supporting utility facilities. These investments established the site as an integrated platform rather than a single-product plant. In May 2003, Samsung General Chemicals formed an equal joint venture with Total, whose chemicals business was then operated through Atofina. The resulting company was initially called Samsung Atofina and was renamed Samsung Total Petrochemicals in 2004. Under the joint venture, the Daesan site expanded its aromatics, paraxylene, naphtha-cracking, styrene and polypropylene capacities. An olefins conversion unit was completed in 2008. The company also established a composite polypropylene operation in Dongguan, China, in 2009 and opened a Shanghai sales subsidiary. Hanwha Group entered the business through a broader transaction with Samsung Group. Announced in late 2014 and completed in 2015, the transaction transferred Hanwha a 57.6% stake in Samsung General Chemicals and joint managerial control over Samsung Total Petrochemicals. The company was subsequently renamed Hanwha Total Petrochemical. The current enterprise remains structured as a 50–50 joint venture between Hanwha Group and TotalEnergies. Its manufacturing chain begins with naphtha cracking, which produces ethylene and propylene. These basic olefins can be sold externally or converted into polymers and other chemical intermediates. The company's activities are generally organized into polymer products, base chemicals and oil products. Polymer production includes polyethylene, polypropylene and related high- and low-density polyethylene materials. Base chemicals include ethylene, propylene and aromatics used in downstream products such as synthetic-fiber materials. The company also produces refined oil products including gasoline, diesel and jet fuel. The Daesan complex contains 13 separate plants, supporting an integrated production model in which feedstocks and intermediates can be transferred among units. In addition to the main South Korean site, the company has operated a compounding facility in Dongguan and maintains sales coverage in South Korea and other Asian markets. Sales offices have been reported in Seoul, Busan, Daegu, Gwangju and Daejeon, as well as in Beijing, Shanghai, Shenzhen, Hong Kong, Tokyo and Nagoya. The company reported a workforce of 1,788 employees as of December 2021 in the referenced material. Following the Hanwha acquisition, the company undertook a large investment program at Daesan, reported in the reference material at approximately US$1.3 billion in aggregate. The investments were intended to expand and modernize the site's petrochemical capabilities. Hanwha TotalEnergies Petrochemical's market position is that of an integrated Korean producer supplying industrial customers and downstream manufacturers in polymers, packaging, construction, automotive, fibers, consumer goods and energy-related applications. Its current status is active.

Hanwha TotalEnergies Petrochemical traces its origins to Samsung General Chemicals, which was established in May 1988 as part of Samsung Group. The company selected Daesan in South Chungcheong Province for an integrated petrochemical complex. Construction began in November 1989, the same year that a comprehensive research institute was opened. The first major Daesan facilities were completed in 1991, and commercial operations began in September of that year. The company expanded its production base throughout the 1990s. A composite polypropylene plant was completed in 1993, followed by styrene facilities in 1996. Aromatics, purified terephthalic acid and utility facilities were added in 1997. These developments gave the Daesan site a broader feedstock-to-products structure and allowed the company to manufacture both basic chemical intermediates and more specialized materials. A major ownership and operating change took place in May 2003, when Samsung General Chemicals entered an equal joint venture with Total through Atofina, Total's chemicals subsidiary at the time. The venture was named Samsung Atofina. In 2004, it adopted the name Samsung Total Petrochemicals. The partnership brought further capital and technical development to Daesan. The BTX and paraxylene aromatics complex was expanded in 2005, while the naphtha cracking center, styrene units and polypropylene facilities were expanded in 2007. An olefins conversion unit followed in 2008. The company also developed a regional commercial and manufacturing presence. In 2009, it opened a composite polypropylene plant in Dongguan, China, and established a sales subsidiary in Shanghai. Sales coverage later included offices in multiple South Korean cities and in major Asian commercial centers including Beijing, Shanghai, Shenzhen, Hong Kong, Tokyo and Nagoya. The next major transition followed an agreement between Samsung Group and Hanwha Group announced in late 2014. As part of a broader asset transaction that also involved Samsung Techwin, Hanwha acquired a 57.6% stake in Samsung General Chemicals and obtained joint managerial control over Samsung Total Petrochemicals. The transaction was completed in 2015, after which the company was renamed Hanwha Total Petrochemical. The enterprise is now known as Hanwha TotalEnergies Petrochemical and operates as a 50–50 joint venture between Hanwha Group and TotalEnergies. After the transfer to Hanwha, the company pursued a substantial investment program at Daesan. The referenced material describes cumulative investment of approximately US$1.3 billion. The site developed into a complex containing 13 separate plants and an interconnected chain based on naphtha cracking. The cracker produces ethylene and propylene, which are either marketed as base chemicals or converted into polyethylene, polypropylene and other downstream products. The company also produces aromatics and refined oil products, including gasoline, diesel and jet fuel. Today, Hanwha TotalEnergies Petrochemical is an integrated producer rather than a narrowly focused polymer brand. Its output supplies downstream industries such as packaging, construction, automotive manufacturing, synthetic fibers and consumer products. The Daesan complex remains the center of operations, supported by Asian sales and distribution activities and by compounding capabilities in China. The company was reported to employ 1,788 people at the end of 2021 in the supplied reference material.

• 2015

  Transfer to Hanwha and rebranding

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  Hanwha completed its acquisition from Samsung and obtained joint managerial control of the petrochemical venture. The company was renamed Hanwha Total Petrochemical.

• 2009

  Expansion into China

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  A composite polypropylene plant opened in Dongguan, China, and a Shanghai sales subsidiary was established.

• 2008

  Olefins conversion unit completed

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  The company completed an olefins conversion unit at the Daesan complex as part of its expansion program.

• 2004

  Renamed Samsung Total Petrochemicals

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  The joint venture adopted the Samsung Total Petrochemicals name.

• 2003

  Equal joint venture with Total

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  Samsung General Chemicals formed a 50–50 joint venture with Total through its chemicals subsidiary Atofina, creating Samsung Atofina.

• 1991

  Daesan complex enters operation

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  The initial Daesan complex was completed and began operations in September.

• 1989

  Daesan complex construction begins

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  Construction of the Daesan petrochemical plant began in November, and the company opened a comprehensive research institute during the year.

• 1988

  Samsung General Chemicals established

  [1]Hanwha TotalEnergies Petrochemicalen.wikipedia.org

  The business was founded in May 1988 as Samsung General Chemicals, a Samsung Group subsidiary.

An integrated South Korean petrochemical and refining producer serving domestic and Asian industrial markets through a large Daesan manufacturing complex.

• Base chemicals

  Ethylene and propylene

  Produced primarily through the site's naphtha cracking center, ethylene and propylene are foundational olefins used to manufacture polymers and other chemical intermediates. Hanwha TotalEnergies Petrochemical uses part of this output internally and sells the remainder to industrial customers.

• Polymers

  Polyethylene

  The company's polyethylene portfolio includes high-density and low-density polyethylene materials. These polymers serve downstream applications including packaging, construction, consumer products and industrial components.

• Polymers · 1993

  Polypropylene

  Polypropylene is produced at the Daesan complex in standard and composite forms. It is supplied to converters and manufacturers serving packaging, automotive, household and other industrial applications. The company also established composite polypropylene capacity in China.

• Base chemicals

  Aromatics and paraxylene

  The aromatics business includes BTX-related products and paraxylene. These intermediates are used in the manufacture of synthetic fibers, plastics and other chemical materials. The aromatics and paraxylene facilities were expanded during the company's Samsung–Total joint-venture period.

• Oil products

  Refined oil products

  The integrated operation also produces refined oil products, including gasoline, diesel and jet fuel. These products complement the company's petrochemical output and reflect the site's combined refining and chemicals configuration.

• 2015

  Hanwha acquisition and corporate reorganizationM&A

  Background

  Hanwha Group agreed to acquire Samsung Group chemical and industrial assets as part of a broader transaction.

  Action taken

  The transaction transferred a 57.6% stake in Samsung General Chemicals to Hanwha and gave it joint managerial control over Samsung Total Petrochemicals. The company was subsequently renamed Hanwha Total Petrochemical.

  Aftermath

  The business continued as a joint venture with Total and later operated under the Hanwha TotalEnergies Petrochemical name. It also undertook substantial investment at Daesan.

  Source

• 2003

  Formation of the Samsung–Total joint ventureM&A

  Background

  Samsung General Chemicals sought a strategic partnership that brought Total's chemicals business into the ownership and operation of the Daesan-based company.

  Action taken

  The parties created a 50–50 joint venture through Total subsidiary Atofina, initially naming it Samsung Atofina.

  Aftermath

  The venture expanded aromatics, cracking, styrene, polypropylene and olefins-conversion capacity and later adopted the Samsung Total Petrochemicals name.

  Source

1. 1Hanwha TotalEnergies Petrochemicalen.wikipedia.org