Petrochemical firms to reduce output hoping for gov't support

The government has asked petrochemical companies to submit their own self-rescue plans by the end of this year if they want eased regulations, financial support and tax incentives aimed at revitalizing the industry, which continues to struggle with a prolonged recession fueled by oversupply from China and the Middle East. In line with this request, 10 domestic firms operating naphtha cracking centers have agreed to reduce output by up to 3.7 million tons, following advice from Boston Consulting Group and months of negotiations. The 10 companies also pledged to accelerate their shift to high value-added, eco-friendly products and minimize the impact of restructuring efforts on local economies. “The only way to resolve this crisis is to cut supply and strengthen fundamental competitiveness,” Deputy Prime Minister and Finance Minister Koo Yun-cheol said Wednesday during a ministerial meeting on industry competitiveness. “Companies should move quickly to develop plans to overhaul their operations and boost competitiveness, as if the deadline were next month, instead of the year-end.Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times