Partial Suspension of Some Production Lines for Lotte Jeongmil Urea Solution

Ulsan Lotte Fine Chemical Urea Solution Factory

[Asia Economy Reporter Choi Dae-yeol] As imports of urea from China have been blocked, some production lines of Lotte Fine Chemical, the largest urea solution manufacturer in Korea, have also stopped operating.

According to the industry on the 8th, Lotte Fine Chemical's Ulsan plant reportedly halted some product lines producing retail urea solution since last week. The company produces 108,000 tons of urea solution annually (based on last year), accounting for about half of the domestic urea solution production.

According to the company, the current urea inventory is expected to be depleted by the end of this month. If additional urea supply is not secured, the entire production line may face disruptions around the end of this month. Currently, only a limited amount supplied in large tanks is barely being produced. Without any special measures, it is expected that factory operations will be difficult starting next month.

To prevent logistics and transportation from halting, the government is negotiating ways to import urea solution or urea from other countries, but experts point out that this is only a temporary fix and not a fundamental solution. The industry estimates that about 25,000 tons of urea solution are used monthly for domestic diesel vehicles. The urgently imported quantity is insufficient to meet domestic demand.