DL Chemical to Shut Down Yeochun NCC No. 1 Plant Amid Restructuring
DL Chemical announced the closure of Yeochun NCC Co.'s No. 1 plant on December 15, 2025, as part of a restructuring plan to address oversupply and improve financial stability. The plant, with a 900,000 metric tonne capacity, is part of a joint venture with Hanwha Solutions. This move aligns with a government initiative urging petrochemical firms to submit restructuring plans. The announcement followed a Korea Economic Daily report, though DL Chemical initially denied the specific proposal before confirming the closure.
DL Chemical, a prominent South Korean petrochemical company, officially announced on December 15, 2025, its decision to close Yeochun NCC Co.'s No. 1 plant. This significant move is a direct consequence of a broader restructuring strategy aimed at mitigating industry oversupply and bolstering the company's financial health. The No. 1 plant, a substantial facility with a production capacity of 900,000 metric tonnes, is a key asset within Yeochun NCC Co., which itself is a joint venture between DL Chemical and Hanwha Solutions and notably stands as Korea's third-largest ethylene producer.This restructuring initiative by DL Chemical is also in response to a government mandate. Local petrochemical companies in South Korea have been urged to submit comprehensive restructuring plans by the end of the year, a measure designed to tackle the prevalent issue of oversupply within the sector and enhance their overall financial resilience. While The Korea Economic Daily had earlier reported on an alleged agreement between Hanwha Chemical and DL Chemical regarding the plant's closure, DL Chemical had initially issued a statement denying this specific proposal. However, the subsequent official announcement confirms the planned shutdown. Yeochun NCC Co. refrained from commenting on the matter, and Hanwha Solutions did not respond to requests for comment, underscoring the sensitivity surrounding this major industry development. The closure reflects increasing pressure on the petrochemical sector to adapt to changing market dynamics and regulatory demands.
