SEOUL, KOREA- Sewon Cellontech announced on July 2 that it signed an agreement with the world’s largest chemical company Dow Chemical to supply 7.04 billion won worth of heat exchangers for a shale gas-based project.
The heat exchanger that Sewon Cellontech will provide to Dow Chemical will be used for 580,000-ton propylene production plant construction that is now underway in Kombinat at Freeport, Texas.
This project is part of Dow Chemical’s schemes to expand the output of propylene and ethylene using shale gas as an energy source. This is to produce propylene, a raw material for polypropylene, based on natural gas instead of oil. The project employs a UOP technology license based PDH (Propane Dehydrogenation) technology to produce propylene directly out of propane gas.
The Dow Chemical deal is equivalent to 2.5 percent of Sewon’s recent sales revenue and the contract is scheduled to be completed by June 1, 2014.
