Yeocheon NCC

Yeochun NCC (YNCC) is a major South Korean petrochemical producer specializing in pyrolyzing naphtha to create essential feedstock for the industry. Its primary products include ethylene, propylene, butadiene, benzene, toluene, and xylene. YNCC operates multiple naphtha cracking centers (NCCs) within the Yeosu National Industrial Complex.

The company was established in December 1999 as a 50:50 joint venture, integrating the NCCs of Hanwha Group (formerly Hanwha Chemical) and DL Group (formerly Daelim Construction/Daelim Industrial). This strategic merger was a response to the industry-wide consolidation following the Asian financial crisis, aiming to gain a competitive edge through combined technology and management expertise. The business model is centered on large-scale production and supply of base chemicals to both domestic and international markets, with its parent companies, Hanwha Solutions and DL Chemical, being key clients.

The company has two co-chief executives, one from each parent company. In recent years, YNCC has faced significant financial distress, posting substantial net losses since 2022 due to a market downturn and oversupply from Chinese competitors. This has led to conflicts between its parent companies regarding financial support and the future of the joint venture, which has required multiple capital injections to avoid default.

Keywords: petrochemical feedstock, naphtha cracking, ethylene producer, propylene, butadiene, benzene, toluene, xylene, Yeosu National Industrial Complex, Hanwha Group, DL Group, base chemicals, South Korea petrochemical, olefins, aromatics, styrene monomer, chemical manufacturing, industrial chemicals