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Photo courtesy of Yeochun NCC |
[Alpha Biz= Kim Jisun] Yeochun NCC, Korea’s third-largest ethylene producer, has finalized a KRW 300 billion (approx. USD 220 million) funding package from its joint major shareholders, DL Chemical and Hanwha Solutions, to avert a looming default crisis.
At a board meeting held on August 18, Yeochun NCC approved a resolution to borrow KRW 150 billion each from DL Chemical and Hanwha Solutions. The decision comes amid severe financial distress triggered by the prolonged downturn in the petrochemical industry, which has forced the company to halt major plant operations and raised market concerns over a potential default.
The emergency funding is expected to stabilize Yeochun NCC’s liquidity through the end of the year, easing immediate pressure on its operations. Industry observers note that the capital injection reflects the commitment of DL Group and Hanwha Group to sustaining Yeochun NCC’s competitiveness despite challenging market conditions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
