South Korean Producers Risk Investing Too Much Too Soon In Ethylene Plants

摘要

Corporate rivalry and relaxation of government controls have set the stage for another wave of capacity expansion. Less than five years after making huge investments in ethylene capacity expansions-oversupply-ing Asian markets and still staggering from $4 billion in losses they collectively endured in 1993-South Korean petrochemical firms are thinking of expanding again. Because plans, even vague ones, have a history of turning into reality in South Korea, foreign chemical executives are taking notice. This time around, however, Korean firms are actively trying to organize developments and prevent another bout of excessive investment.