Lotte Confectionery and Hyundai Oilbank Join Forces to Expand Eco-Friendly Energy Production

First Collaboration Between Domestic Food and Oil Companies... Supplying Eco-Friendly Energy Resources to Hyundai Oilbank
Expanding Synergy in Oleo Chemical Business, a Strategic New Business Area for Both Companies

At the strategic partnership agreement ceremony for the Lotte Confectionery and Hyundai Oilbank bio joint project at Hyundai Oilbank Seoul Office in Jung-gu, Seoul, (from left) Jinseong Lee, Business Director of Lotte Confectionery, Youngmin Joo, CEO of Hyundai Oilbank, and Seungsoo Lee, Head of Global Business Division, are posing for a commemorative photo.

[Asia Economy Reporter Eunmo Koo] Lotte Confectionery, which operates in the edible oil business, is set to fully launch its new business in the oleochemical sector, starting with the supply of eco-friendly energy resources. Oleochemicals refer to the non-edible oil business area that produces chemical products using animal and vegetable oils as raw materials.

Lotte Confectionery announced on the 1st that it signed a "Strategic Partnership Agreement for Bio Joint Business" with Hyundai Oilbank at Hyundai Oilbank's Seoul office in Jung-gu, Seoul. This is the first collaboration between a domestic food company and an oil refining company in the industry.

Through this business agreement, Lotte Confectionery and Hyundai Oilbank will actively cooperate to fully develop the oleochemical business, a strategic new business area for both companies, and create synergy. First, Lotte Confectionery plans to supply biodiesel feedstock oil to Hyundai Oilbank. Additionally, by combining Lotte Confectionery’s competitiveness in the animal and vegetable oil business with Hyundai Oilbank’s expertise in refining and chemical fields, they aim to create added value and secure various possibilities in the oleochemical industry.

Lotte Confectionery plans to strengthen ESG (Environmental, Social, and Governance) management by fully entering the oleochemical new business. Biodiesel can also be produced from food by-products and recycled raw materials, which positively promotes resource circulation and environmental protection. With this supply expansion, discarded food by-products that burden the environment will decrease, and the production of renewable energy with lower carbon emissions compared to conventional petroleum fuels will increase.

Hyundai Oilbank has actively entered the white bio sector, a carbon reduction industry that produces energy sources and chemical materials using plant resources as raw materials. Through this MOU, it plans to utilize the eco-friendly energy resources supplied by Lotte Confectionery as raw materials for its white bio business. By 2023, Hyundai Oilbank plans to build a next-generation biodiesel manufacturing plant with an annual capacity of 130,000 tons at its Daesan plant.

Lee Jin-sung, Head of Business at Lotte Confectionery, said, “Through this business agreement, we expect both companies to cooperate in the oleochemical business and generate synergy effects,” adding, “Along with strengthening ESG management, we will further solidify our competitiveness in the domestic oil industry.”