[Asia Economy Reporter Oh Hyung-gil] Lotte Fine Chemical announced on the 27th that its operating profit for the third quarter increased by 71.5% year-on-year to 120.4 billion KRW.
Sales reached 628.5 billion KRW, up 27.7% from last year. Despite the global economic slowdown, the operating profit margin slightly increased to 19.2% compared to the previous quarter.
Although there were impacts from a shutdown due to regular maintenance at the end of September and a decline in international prices of chlorine-related products, profitability improved as sales of expanded high value-added specialty material cellulose products, completed in the second quarter, increased.
Lotte Fine Chemical has started a 16 billion KRW expansion of TMAC, a high value-added specialty material used as a raw material for semiconductor developing solution. TMAC is the raw material for TMAH, a semiconductor developing solution used in semiconductor and OLED circuit manufacturing processes. The expansion is planned to be completed by December next year.
Additionally, the company signed an import contract for 50,000 tons of clean ammonia, the world's first commercial production, actively investing in clean hydrogen and ammonia businesses. Based on East Asia's largest ammonia distribution infrastructure, it aims to lead energy transition for achieving global carbon neutrality.
A Lotte Fine Chemical official stated, "Although there were impacts from the decline in international chlorine prices due to the global economic slowdown and regular maintenance, profitability further improved due to increased sales volume from the expansion of high value-added specialty material cellulose products," adding, "We will expand high value-added specialty materials and clean hydrogen and ammonia businesses to secure profitability and growth."
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