(Updates with comments from company in third paragraph.)
Oct. 11 (Bloomberg) -- Hyundai Oilbank Co., South Korea’s fourth-biggest refiner, began construction of a site to store oil and petrochemical products as part of its plan to become a regional fuel distributor.
Construction of the storage facility at Ulsan harbor, southeast of Seoul, will cost 100 billion won ($86 million), Seoul-based Hyundai said in an e-mailed statement today.
The company plans to store oil from domestic suppliers and handle cargoes in transit from Japan and Singapore, Chief Executive Officer Kwon Oh Gap said in the statement. The Ulsan facility, which will include a 300,000-kiloliter tank, may be completed in the second half of 2013, according to the statement.
Hyundai will be the first domestic refiner moving into commercial oil-storage as South Korean oil-processing plants diversify their businesses. The company is owned by Hyundai Heavy Industries Co., the world’s biggest shipbuilder.
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