Lotte Chemical and Lotte Fine Chemical Collaborate at Yeosu Hecellos Plant

Expansion of Specialty Product Manufacturing Capabilities

Lotte Chemical announced on the 19th that it has constructed the production plant for 'Hesellos,' the representative specialty product of Lotte Fine Chemical, on the Lotte Chemical Yeosu development site and has started commercial production.

Lotte Chemical Yeosu Hecellos Plant View (Photo by Lotte Chemical)

Lotte Chemical has established a consignment production system by safely supplying ethylene oxide (EO), the main raw material of Hesellos products, to the newly built plant through pipelines instead of land transportation.

Hesellos is a cellulose derivative made from EO and pulp, used as an additive that provides viscosity and moisturizing properties in water-based paints, household goods, cosmetics, and more.

EO, a high-pressure gas, was previously supplied from Lotte Chemical's Yeosu plant to Lotte Fine Chemical's Ulsan plant via land transportation. However, with the completion of the Yeosu Hesellos plant, about 10,000 tons of raw materials procurement and production are now carried out in one location.

The Yeosu Hesellos plant is expected to be a representative cooperative project between the two companies. Lotte Chemical will generate profits through EO product sales and Hesellos consignment production, while Lotte Fine Chemical will establish a foundation for future growth through stable raw material procurement.

Lee Hoon-ki, Head of the Chemical Group at Lotte Group, said, "Based on our specialty materials capabilities, which are the foundation of various industries, we will create high value-added businesses and build a solid growth momentum to continue strong growth."