Advanced Petrochemical (Advanced) commenced commercial operations of the polypropylene plant in South Korea, it said in a bourse statement.

The financial impact of the investment by SK Advanced is expected to reflect in Advanced's financial statements from Q2 2021 and subsequent periods, based on the prevailing market prices.

The joint venture (JV) will be supplied with propylene (main feedstock) from SK Advanced on a long-term basis.

According to data compiled by Argaam, on June 22, 2018, Advanced signed a JV agreement to set up a polypropylene plant in South Korea with a capacity to produce 400,000 metric tons per annum.

The agreement was signed between SK Advanced - a JV company in South Korea, owned 30% by Advanced through Advanced Global Investment Co., SK Gas Co., and Petrochemical Industries Co. - and PolyMirae Co. Ltd., a 50:50 JV between LyondellBasell and Daelim.

SK Advanced holds 49.99% ownership of the JV’s capital.

Currently SK Advanced is operating a propane dehydrogenation (PDH) plant in South Korea since 2016 with capacity to produce 600,000 metric tons per annum of propylene. PolyMirae is currently operating four polypropylene Spheripol production lines in South Korea with a total capacity of 700,000 metric tons per annum.