Lotte Chemical's Daesan plant, where the explosion occurred last month, is expected to take some time to normalize. It is also expected that due to the remaining procedures for compensation for damages with residents, it will inevitably disrupt production.
According to industry sources on April 10, the operation of the basic oil line connected to the Naphtha Cracking Center (NCC) has been suspended since March 4 when the accident occurred.
The four lines affected by the explosion are benzene, touluene, mixed xylene (BTX), and butadiene (BD).
An investigation by the National Institute of Scientific Investigation is currently underway. Lotte Chemical plans to send a fire-caused facility to the manufacturer for inspection.
It is difficult to predict the exact shutdown period because the recovery period for the facility has not been calculated. Some observers say it could exceed the originally expected six months.
Downstream is operating normally through nine processes through external It includes 135,000 tons of low-density polyethylene, 200,000 tons of monoethylene glycol, 50,000 tons of ethylene oxide adduct and 50,000 tons of glycol ether. Part of the 230,000-ton polypropylene line is also known to have been restarted since April 14.
Damage compensation is also one of the tasks to be addressed. About 1,951 cases of damage were reported, with some 50 residents and workers injured in the explosion, and some of the shops and houses being destroyed.
Currently, about 80 percent of the compensation process has been completed or is underway. However, they are reportedly at odds with some of the merchants who suffered the damage and their scope.
Lotte Chemical is estimated to cut its first-quarter operating profit by more than half, reflecting damage and opportunity loss costs from the suspension of the Daesan plant's production line.
