According to Reuters report that South Korea's Lotte Chemical indicated its Hyundai Chemical joint venture with Hyundai Oilbank will build a 2.7 trillion Korean won (USD 2.5 billion) petrochemical plant in the country's southwest. The two companies signed a deal to jointly invest in the new petrochemical plant, which will use heavy fuel oil as a feedstock to produce 750 kta of polyolefins and 400 kta of olefins, Lotte Chemical said in a regulatory filing. The new plant is expected to start commercial operations in late 2021 and will be built in the city of Daesan, where Hyundai Oilbank's refining facilities are located. The two firms aim to enhance their cost competitiveness and diversify their product lines through the investment. Under the joint venture, Lotte Chemical and Hyundai Oilbank currently run a 130 kbpd condensate splitter in Daesan, which began operations in 2016. Hyundai Oilbank, South Korea's smallest refiner by capacity is planning for an initial public offering around September or October this year.