Urea Solution Factory Operating Rate at 60%
Full 100% Operation from December
Supply to Nationwide Sales Network Immediately After Production
Chairman Shin Dong-bin Contacts Japan's Mitsui Chemicals to Secure Urea Directly
[Asia Economy Reporter Hwang Yoon-joo] Lotte Fine Chemical will operate its urea solution production line at 100% capacity starting next month. This is thanks to 19,000 tons of urea secured from overseas sources, including quantities obtained through direct contact by Lotte Chairman Shin Dong-bin with Japan's Mitsui Chemicals and the lifting of China's export ban.
According to industry sources on the 12th, Lotte Fine Chemical is gradually increasing the urea solution production rate, currently at about 60%, to a full 100% operation system from next month. Since the urea shortage crisis, only the large-scale bulk line used for freight trucks has been operating due to raw material shortages. Going forward, production will expand to cover all vehicle-use products such as 10ℓ containers, and supply will be immediately distributed nationwide through sales networks.
The full operation of the urea solution plant is made possible by the previously secured 19,000 tons of urea. Lotte Fine Chemical announced that it has secured urea from various sources: 6,000 tons from the recently lifted Chinese export suspension, 700 tons obtained domestically through the government, 8,000 tons from Vietnam, 2,000 tons from Saudi Arabia, 1,000 tons from Japan, 500 tons from Russia, and 200 tons from Indonesia.
In particular, the volume imported from Japan was secured by Lotte Group Chairman Shin Dong-bin, who personally contacted Mitsui Chemicals during the 'urea solution crisis' to obtain high-grade urea. Currently, Japan produces urea through two companies, Mitsui Chemicals and Nissan Chemical. Since Japan imports all quantities beyond what these companies produce, concerns about urea shortages have arisen domestically as well.
Mitsui Chemicals' response to Chairman Shin's contact is said to be due to the relationship between Shin and personnel at the Japanese chemical companies. Lotte Group has strengthened business cooperation with Japanese chemical companies through its chemical affiliate Lotte Chemical. Notably, Lotte Chemical signed a technology introduction contract with Mitsui Chemicals in 1976 and established a joint venture with Mitsui Chemicals in 2011, maintaining a close relationship. The urea secured by Chairman Shin is of high purity, and when mixed with industrial urea solution, production volume is expected to increase further.
A Lotte Fine Chemical official stated, "Japan produces urea domestically but not in large quantities and relies heavily on imports," adding, "Japan is also facing difficulties securing urea, so the volume secured by Chairman Shin Dong-bin is significant."
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