Lotte Chemical "Battery and Hydrogen Business Expansion in Full Swing... Targeting 50 Trillion KRW Sales by 2030"

[Asia Economy Reporter Donghoon Jung] "Lotte Chemical has concluded that expanding future value must go hand in hand with solving global issues. We will redefine our 2030 vision to focus on carbon reduction growth and achieving 50 trillion KRW in sales by 2030."

Lotte Chemical is set to actively enter businesses such as battery materials and hydrogen. This marks a declaration to transform from a petrochemical company into a comprehensive chemical company for the decarbonization era. Kim Kyohyun, Vice Chairman overseeing the chemical division of Lotte Group, presented the ‘2030 Vision’ with financial goals of ‘achieving 50 trillion KRW in sales by 2030’ and non-financial goals centered on ‘carbon reduction growth.’

At the future vision declaration ceremony held on the 19th at Lotte World Tower in Jamsil, Songpa-gu, Seoul, Vice Chairman Kim said, "In the pandemic era, fundamental changes are required for chemical companies due to the carbon neutrality trend and shifts in market dynamics. We aim to announce a new management paradigm that proactively responds to sustainable future development, eco-friendly values, stakeholder demands, and global regulations."

The ceremony was attended by Hwang Jin-gu, Head of Basic Materials Business and Hydrogen Energy Business Unit, Lee Young-jun, Head of Advanced Materials Business and Battery Materials Business Unit, and Kim Yeon-seop, Head of ESG (Environment, Social, Governance) Management Headquarters.

Through the announcement, Lotte Chemical unveiled a new corporate vision and slogan, "Every Step for GREEN," embodying the goal of advancing toward a prosperous and green world. The ‘2030 Vision’ was also introduced, with financial targets of achieving 50 trillion KRW in sales and non-financial targets focused on carbon reduction growth by 2030.

Vice Chairman Kim stated, "As a growth strategy to achieve the 2030 Vision, we will expand general petrochemical businesses and high value-added specialized businesses, and restructure our portfolio by expanding green businesses such as hydrogen energy, battery materials, recycling, and bioplastics. We will achieve carbon reduction growth through mid- to long-term investments including improving energy efficiency, expanding the application of carbon capture utilization (CCU) technology, and introducing renewable energy."

To reach 50 trillion KRW in sales by 2030, Lotte Chemical plans to increase petrochemical business sales from 11 trillion KRW last year to 20 trillion KRW by diversifying regions and enhancing product competitiveness. The high value-added specialized business is expected to grow from 7 trillion KRW to 18 trillion KRW through expanding existing product lines, upgrading general business products, and entering new sectors such as bio materials and eco-friendly materials. The green business is targeted to grow to a total sales scale of 12 trillion KRW, including 5 trillion KRW from hydrogen energy, 5 trillion KRW from battery materials, and 2 trillion KRW from recycling and bioplastics.

Earlier in March, Lotte Chemical established new organizations related to hydrogen and battery materials. The newly formed Hydrogen Energy Business Unit is led by Hwang Jin-gu, Head of Basic Materials Business, while the Battery Materials Business Unit is headed by Lee Young-jun, Head of Advanced Materials Business. Each unit is seeking to secure a leading position in the hydrogen market and explore additional entry into battery and high value-added materials businesses through systematic new business development and investment execution.