South Korean chemicals maker Hanwha Chemical Corp. said Tuesday it has expanded its ethylene-vinyl acetate plant in the country’s southeastern part to sharpen its global competitive edge.

The expansion will increase the plant’s annual production capacity to 160,000 tons from the current 120,000 tons and generate additional sales of 100 billion won ($89.5 million), Hanwha Chemical said in a press release.

EVA, a high-value chemical that was produced in 1985 for the first time in South Korea by Hanwha Chemical, is a key component in solar cells.

The expansion of the plant in Ulsan is expected to strengthen Hanwha Chemical’s competitiveness in the global market, which is suffering from slackening demand, the company said.

Under a joint-venture deal with Saudi International Petrochemical Co. signed in July 2009, Hanwha Chemical has been building a plant with an annual production capacity of 200,000 tons of EVA and 125,000 tons of polyvinyl acetates in the industrial zone of Jubail in Saudi Arabia.

The Saudi plant is scheduled to start mass production of EVA and polyvinyl acetates next year.

Established in 1999, Sipchem is one of the largest petrochemical companies in Saudi Arabia and was listed on the Saudi stock market in 2006. (Yonhap News)