Japan Cosmo Oil Signs MOU for Future New Business Collaboration
HD Hyundai Oilbank is enhancing synergy in refining and petrochemical businesses by absorbing and merging its subsidiary HD Hyundai Cosmo.
On the 31st, HD Hyundai Oilbank announced that it signed a share acquisition agreement with Japan's Cosmo Oil and HD Hyundai Cosmo. HD Hyundai Cosmo, which produces aromatic (BTX) products, basic raw materials for petrochemicals, was established in 2009 with 50% investment each from HD Hyundai Oilbank and Cosmo Oil.
Joo Young-min, CEO of HD Hyundai Oilbank (left), is signing a contract with Suzuki, CEO of Cosmo Oil, at the HD Hyundai Cosmo share acquisition agreement ceremony held at Lotte Hotel in Sogong-dong on the 31st. (Photo by HD Hyundai Oilbank)
Through this agreement, HD Hyundai Oilbank plans to acquire all shares held by Cosmo Oil and proceed with the absorption merger process.
HD Hyundai Cosmo has mainly produced PX (paraxylene) for its establishment purpose, but with this share acquisition, restrictions on future production products will be removed, enabling the production of high-margin products such as special diesel, light diesel, and high-quality gasoline according to market conditions. This is a strategic move to maximize synergy between refining and petrochemicals.
HD Hyundai Oilbank also signed a memorandum of understanding (MOU) for future new business cooperation with Cosmo Oil, aiming to continue the cooperative relationship between the two companies. The agreement includes close collaboration in future energy businesses such as sustainable aviation fuel (SAF), circular naphtha, pyrolysis oil, as well as lubricants and carbon capture, utilization, and storage (CCUS) fields.
Joo Young-min, CEO of HD Hyundai Oilbank, stated, "Through this acquisition agreement, more efficient and profitable process operations have become possible," adding, "We will enhance competitiveness through the organic integration of refining and petrochemicals."
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