OCI Co., South Korea’s chemical and green energy company, has completed its fourth factory to refine coal tar in China. With the new plant, the Korean company has become the world’s third largest company in coal tar production.

The company on Tuesday held a ceremony for the completion of Ma Steel OCI Chemical with the annual capacity of 350,000 tons, a joint venture established with China-based Maanshan Iron & Steel Company, in Maanshan, Anhui Province, China. OCI has a 60 percent stake in the operation.

The construction of the plant started in May last year on a site of 59,363 square meters. The factory would refine coal tar to produce carbon black oil, pitch and naphthalene. It plans to sell them to foreign markets such as China and Middle Eastern countries.

Coal tar is a by-product occurring when coal is carbonized to make steel cokes. By refining coal tar, it produces basic chemicals such as carbon black oil, pitch and naphthalene.

Maanshan Iron & Steel Company located in Anhui Province with the annual capacity of 18 million tons would supply by-products - coal tar, steam and electricity - to the factory and OCI would create synergy by injecting know-how and expertise it has gained from coal tar refining business for over 40 years in Korea and China.

“OCI has made its utmost efforts to secure a new growth engine with the factory in China which is emerging as a major coal tar refining market,” said an official of the Korean company.

OCI started the coal chemistry business in full swing in 2000 to run a coal tar refining plant with the annual capacity of 450,000 tons in Pohang, Korea.

The construction of the new factory would make the company the world’s third largest company in the sector with annual capacity of 1.18 million tons.

By Kang Young-woon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]