Restructuring Non-Core Overseas Businesses and Expanding Specialty Business
[Asia Economy Reporter Oh Hyung-gil] Lotte Chemical is selling non-core overseas businesses to strengthen its high value-added materials business.
On the 16th, Lotte Chemical held a board meeting and decided to sell its 75.01% stake in LCPL, a Pakistan-based subsidiary producing and selling high-purity terephthalic acid (PTA), to Pakistan chemical company Lucky Core Industries for approximately 192.4 billion KRW.
LCPL was acquired by Lotte Chemical in 2009 for about 14.7 billion KRW, and recorded sales of 471.3 billion KRW and operating profit of 48.8 billion KRW in 2021.
Since the second half of 2020, Lotte Chemical has suspended operations at its Ulsan PTA plant and converted the facility to produce high-purity isophthalic acid (PIA). With the sale of the Pakistan subsidiary, it will no longer produce this product.
The funds secured from the stake sale will be used to promote the high value-added production of petrochemical products such as PE, PP, and PET, expand specialty businesses, and enter eco-friendly material sectors.
In a press briefing last year, Lotte Chemical announced its plan to achieve 50 trillion KRW in sales by 2030, with high value-added specialty and eco-friendly material businesses accounting for about 30 trillion KRW, or 60% of total sales.
Hwang Jin-gu, head of Lotte Chemical’s Basic Materials Business, said, "As part of adjusting our business portfolio in line with the Vision 2030 strategic direction, we will secure stable competitiveness in existing businesses while expanding the company’s competitiveness through growth in high value-added product groups."
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