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Seosan Mayor Lee Wan-seop, south Chungcheong Province (Chungnam)'s vice governor for political affairs Gweon Heui-tae and Hyundai Oilbank's executive director Mun Jong-bak visited Shell's Asia head office in late August to sign a $300 million-investment memorandum of understanding (MOU).
Under the MOU, Shell, a Netherland-based oil company, will set up a joint venture Hyundai-Shell Base Oil to invest $300 million for the next five years to establish a base oil manufacturing facility in Hyundai Oilbank complex located in Seosan, Chungnam.
Hyundai Oilbank that will team up with Shell, the world's No. 1 lubricant supplier, will stimulate the local economy and create jobs, Seosan expects.
Hyundai Oilbank expects the joint venture to diversify its business portfolio that has thus far focused on oil refinery operation.
"Seosan is home to one of the Korea's top three petrochemical complexes and is located adjacent to an export port with the shortest distance to China," said Mayor Lee at the signing ceremony. "We will provide all possible administrative supports to help the joint venture complete approval and permission procedures as scheduled."