Hanwha TotalEnergies completes building POE pilot plant

Hanwha TotalEnergies Petrochemical Co., a South Korean joint venture between Hanwha Group and TotalEnergies, announced on Thursday that it has completed a pilot plant for polyolefin elastomer (POE).

The newly completed POE plant, which began construction in August 2021 and took 18 months, was built within the Hanwha TotalEnergies Daesan Complex. The company invested 34 billion won ($25.97 million) and the plant can produce 200 tons of POE products annually and conduct major process tests.

POE has lower density and higher elasticity compared to traditional polyethylene products. It also possesses excellent impact strength. POE is used in various applications such as automotive interior and exterior materials, food packaging, shoes, and wires. The global market for POE is expected to grow at an annual rate of 6.9% until 2030, reaching $6.3 billion.

Through the POE pilot tests, Hanwha TotalEnergies aims to secure process data for optimized product design and commercial process design, enabling them to complete the basic structure of a commercial plant within one year and proceed with full-scale investments.

"We plan to focus on expanding the proportion of high value-added products, including the entry into the POE business, which is gaining attention as a next-generation photovoltaic material, in order to secure the company's sustainable competitiveness," CEO of Hanwha TotalEnergies Na Sang-seop said.

Write to Hyung-Kyu Kim at khk@hankyung.com