SK Incheon Petrochem

Private Equity
PORTFOLIO

Industry : Petrochemica

Investment Year : 2012,2013
Investment Type : Capital Expenditure Investment

Judging that this diversification of products is beneficial forSK’s market competency, Stonebridge decided to proceed with the investment in preferred shares.

SK Energy aims to expand its business by utilizing the geographical proximity of the SK Incheon CLS to China, the world’s largest PX market. Stonebridge Capital invested KRW 800 billion in SK Incheon Petrochem’s 1,600 billion KRW project for the construction of Para Xylene (PX)  production plant.

Prior to the investment, SK Incheon petroleum plant processed 276,000 bpd of crude oil to produce gasoline, kerosene, and diesel. Through this investment, the plant may also be able to produce Para Xylene and other petrochemical products. Judging that this diversification of products is beneficial forSK’s market competency, Stonebridge decided to proceed with the investment in preferred shares.

Stonebridge Capital strives to increase the portfolio companies’ values by investing proactively based on market analysis and participating in key management decision-making processes. Currently, Stonebridge is taking follow-up measures on the investment by keeping track of CAPEX and reviewing performance metrics.