NEWS

▶ Proactive management of aging core facilities and long-term equipment stability to be secured... project to be completed by 2035 in three phases

▶ Aims to continuously improve operational stability by preventing potential plant equipment risks in advance

▶ “We will pursue proactive upgrades to major facilities to enhance the competitiveness of the refinery.”

An HD Hyundai Oilbank official said, “Unlike general manufacturing industries, refineries operate 24 hours a day, so the core of competitiveness lies in stable operating capability,” adding, “We will continue to proactively upgrade major facilities in order to further enhance the reliability of process operations.”

Going forward, HD Hyundai Oilbank plans to complete Phase 1, involving improvements to high-risk and high-failure equipment, by 2027 with an investment of approximately KRW 130 billion. This will be followed by Phase 2, focused on system improvements and strengthening equipment reliability, from 2028 to 2031, and Phase 3, involving the replacement of aging equipment and the identification of new initiatives, from 2032 to 2035.

In the first year of the project, the company invested approximately KRW 30 billion, focusing on equipment with a high likelihood of failure, and completed major improvements including material upgrades and the replacement of aging equipment. As a result, the number of emergency shutdowns and warnings in 2025 fell to less than 50% of the previous year’s level, demonstrating the project’s tangible effectiveness.

To this end, the company formed task forces across key divisions, including production, equipment, engineering, and inspection, and, based on decades of accumulated process operation experience, identified more than 200 improvement tasks and established a mid- to long-term equipment improvement roadmap.

Through the Anti-Aging Project, HD Hyundai Oilbank plans to fundamentally improve its equipment management approach, which had previously been carried out in a fragmented manner through short-term improvement investments or emergency replacements centered on problematic equipment. The company also plans to proactively block potential equipment risks and continuously improve plant operational stability by establishing mid- to long-term execution plans, addressing root causes, and conducting integrated reviews across organizations and facilities.

HD Hyundai Oilbank’s Daesan plant is one of the more recently completed refinery facilities in Korea. Following the completion of the first plant in 1989, an additional expansion in 1996, and the start of commercial operations at a new advanced upgrading unit in 2011, the company has continued to invest in equipment upgrades alongside regular maintenance. However, as more than 10 years have passed since major units were commissioned, the need for systematic and long-term equipment reliability management has grown.

HD Hyundai Oilbank announced on the 17th that it is launching an Anti-Aging Project to proactively manage the aging of key facilities at its Daesan plant and secure long-term equipment stability. The project, which began in January this year, will be carried out in three phases over approximately 10 years through 2035.

HD Hyundai Oilbank is moving to enhance the reliability of its major production facilities in order to improve plant operating efficiency, while at the same time creating a safer workplace.