LOTTE Chemical restructures basic chemicals and expands specialty businesses after Q3 2026 loss

Q3 2026 consolidated results

LOTTE Chemical reported consolidated revenue of KRW 5.3951 trillion and an operating loss of KRW 281.4 billion for Q3 2026, citing geopolitical risks, volatile feedstock and product prices, and higher ocean freight as primary cost pressures.

Restructuring of basic chemicals

The Daesan integrated joint venture H&L Advanced launched in September and is focused on establishing an integrated operating system and generating synergies. For Yeosu, the company plans to spin off the Yeosu plant and form an integrated entity with Yeochun NCC in the first half of next year to improve operational efficiency and increase the share of high-value-added products.

Advanced Materials expansion

All production lines at the Yulchon compounding plant began operations in September, creating Korea’s largest single-site compounding capacity at 500,000 tons per year. An additional dedicated line for high-value-added products is scheduled to start in Q1 next year to raise the specialty-products proportion.

Segment performance

The Basic Chemicals segment recorded KRW 3.7235 trillion revenue and an operating loss of KRW 216.6 billion due to reverse-lag from lower feedstock prices, narrower spreads, and a weaker exchange rate. Advanced Materials posted KRW 1.0893 trillion revenue and an operating loss of KRW 15.4 billion. LOTTE Fine Chemical reported KRW 525.3 billion revenue and operating profit of KRW 22.0 billion. LOTTE Energy Materials recorded KRW 289.7 billion revenue and an operating loss of KRW 21.3 billion, with higher volumes to North American ESS and EV customers and a new Malaysian line expected to support gradual improvement in Q4.