Hanwha TotalEnergies Trims Butadiene Production Capacity at Daesan Plant

Hanwha TotalEnergies Petrochemical, a significant player in the South Korean petrochemical industry, has implemented a temporary reduction in its butadiene production capacity at the Daesan facility, located in Daesan, South Korea. This decision, initiated on March 5, 2024, is a response to a technical failure detected at the facility with an annual butadiene production capacity of 150 thousand tons.

The planned reduction in butadiene production is set to be in effect from March 5 to March 13, 2024, as Hanwha TotalEnergies addresses the technical issue without requiring a complete shutdown. However, the company anticipates production losses totalling approximately 3,200 tonnes during this period. Consequently, March contract deliveries to buyers are expected to decrease to 1.4 thousand tons. Additionally, the company has decided to forgo its initial plan to sell a spot cargo weighing 1.8 thousand tons in April.

This development comes on the heels of previous reports indicating that Hanwha TotalEnergies Petrochemical had resumed butadiene production at the Daesan facility in mid-June 2022 following scheduled maintenance. The facility, with an annual butadiene production capacity of 150 thousand tons, had undergone repairs after being temporarily closed at the end of April.

Hanwha TotalEnergies Petrochemical is a key player in the production of various petrochemical products, including polyethylene, polypropylene (PP), PP compounds, ethylene, propylene, benzene, and butadiene. Notably, at the end of November 2014, the prominent South Korean conglomerate Samsung Group had announced the sale of a controlling stake in its four petrochemical and defense divisions, valued at USD 1.72 billion. This stake was acquired by the Korean industrial conglomerate Hanwha Group. Subsequently, on May 1, 2015, Samsung Total Petrochemicals underwent a name change to become Hanwha Total Petrochemical.

In the ever-evolving landscape of the petrochemical industry, technical challenges and adjustments in production capacities are not uncommon. Hanwha TotalEnergies Petrochemical's measured response to the detected technical failure underscores the company's commitment to maintaining operational efficiency and addressing issues promptly.

The temporary reduction in butadiene production is a strategic move aimed at resolving the technical problem efficiently, mitigating production losses, and ensuring the continued supply chain stability. As the company navigates this short-term adjustment, it highlights the complexities and dynamic nature of the petrochemical sector, where companies must balance production demands with unforeseen challenges.

As part of the broader Hanwha Group, Hanwha TotalEnergies Petrochemical plays a pivotal role in the conglomerate's diverse portfolio. The strategic adjustments in butadiene production underscore the interconnectedness of various industries within the conglomerate, emphasizing the need for adaptability and coordinated efforts to ensure sustained growth.

Hanwha TotalEnergies Petrochemical's temporary adjustment in butadiene production capacity at the Daesan facility reflects a proactive and strategic response to a technical challenge. This decision aligns with the company's commitment to operational excellence, customer satisfaction, and market responsiveness. As the petrochemical industry continues to evolve, such measured responses contribute to the sector's overall resilience and ability to navigate unforeseen disruptions.