Petrochemical firms to cut 3.7 mil. tons in NCC capacity through restructuring: minister

Local petrochemical companies plan to voluntarily reduce the combined capacity of their naphtha cracking centers (NCC) by up to 3.7 million tons under far-reaching restructuring measures partly aimed at tackling an industrywide crisis stemming from a global oversupply, the industry minister said Monday. Industry Minister Kim Jung-kwan made the remark in a meeting with the chief executive officers of local petrochemical companies, also noting that all 16 major petrochemical firms here have submitted their initial business restructuring plans. Under their restructuring plans, the companies plan to reduce their NCC capacity by 2.7 million to 3.7 million tons, which would account for 18-25 percent of the country's total NCC capacity, Kim said. Kim vowed to "swiftly" devise a support package for the petrochemical sector's self-rescue plan, including tax incentives, research and development support, and the streamlining of regulations. It will also include support for a transition to high-value and eco-friendly products. In August, the government unveiled its three principles for helping the a