OCI and POSCO to establish joint venture to utilize coal-based by-products in new businesses

Park Sae-jin Reporter() | Posted : April 29, 2019, 17:00 | Updated : April 29, 2019, 17:00

[Courtesy of Posco Chemical]

SEOUL --  OCI, a Seoul-based green energy and chemical company, partnered with POSCO Chemical, a coal chemistry and carbon material wing of South Korean steelmaker Posco, to set up a joint venture to utilize secondary products.

By-products, also known as secondary products, are recyclable materials derived from a manufacturing process. At Posco steel mills in the southeastern port city of Pohang, by-products such as super-heated gas and other materials including carbon and zinc are created. The steelmaker currently uses six by-product gas generators to create electricity using hot gas to power plants.

OCI said in a statement Monday that it has signed a memorandum of understanding with Posco Chemical to jointly discover new business opportunities in the by-product market.

With by-products, the joint venture will manufacture high-purity hydrogen peroxide for semiconductor and display manufacturing as well as manufacturing Para-DiChloroBenzene (PDCB), a kind of reinforced plastic, commonly used as interior materials for cars.

"If technology and know-how of both companies with a competitive edge in basic materials and chemicals are combined, we will be able to contribute to the development of domestic industries," OCI president Kim Taek-joong was quoted as saying. He said the joint venture's competitive edge will be upgraded with Posco Chemtech's ability to stably supply high-quality base materials.

As the first step, the two companies agreed to kick start a feasibility study for the manufacturing of industrial high-purity peroxide. The global waste-to-energy market is projected to reach $42.7 billion, according to Statistica, a market research firm.
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