LOTTE Chemical Restructures for High-Value Specialty Focus

Restructuring and Mergers

LOTTE Chemical is restructuring its naphtha cracking center (NCC) operations in Daesan and Yeosu to transition towards high-value specialty materials. The company plans to merge its Daesan plant with HD Hyundai Chemical, with government approval expected by January. An additional restructuring plan involves integrating facilities with Hanwha Solutions, DL Chemical, and Yeocheon NCC at the Yeosu Industrial Complex.

Specialty Materials and Facilities

To enhance its specialty materials portfolio, LOTTE Chemical is constructing Korea's largest compounding plant in Yulchon, Jeollanam-do, with a total annual capacity of 500,000 tons, set for completion in the second half of next year. The company is also expanding facilities to enable future production of Super Engineering Plastics (Super EP).

Battery and Semiconductor Initiatives

LOTTE Energy Materials, a subsidiary, is supplying high-end copper foil and circuit foil technologies for batteries and AI applications. In the semiconductor sector, a new TMAH production facility in Pyeongtaek is scheduled to begin full-scale operation by the end of next year, supporting Korea's semiconductor industry.

Hydrogen Energy Expansion

In Ulsan, LOTTE SK Eneroot has commenced operations of a 20MW hydrogen fuel cell power plant, with plans to expand to 80MW by next year. The company is also operating Korea's largest high-pressure hydrogen distribution center at the Daesan Petrochemical Complex.

Financial Strategy

LOTTE Chemical is strengthening its financial position by divesting non-core businesses, securing KRW 1.7 trillion in liquidity. This includes liquidating LUSR in Malaysia and selling stakes in various subsidiaries.