Lotte Fine Chemical announced on the 29th that its operating profit for the first quarter was 10.8 billion KRW, a decrease of 74.3% compared to the same period last year. During the same period, sales fell 23.9% to 399.4 billion KRW.
The Chemical Business Division recorded sales of 280 billion KRW, down 7.7% from the previous quarter. This was attributed to reduced sales volume due to scheduled maintenance of chlorine-based products and a decline in international prices caused by decreased upstream demand.
The Green Materials Business Division's sales increased 10.5% from the previous quarter to 119.4 billion KRW. This was driven by price increases due to expanded upstream market demand and increased sales volume from the expansion of the third plant for the cellulose-based paint additive Hecellos and food and pharmaceutical products.
Lotte Fine Chemical explained that it is promoting 'strengthening the competitiveness of No. 1 products' to improve profitability. The company plans to complete additional expansion of 'TMAC,' a semiconductor developer raw material with the world's largest production scale, in the second half of the year to respond to the expanding global semiconductor demand.
Additionally, the company will complete the additional expansion of cellulose materials for food and pharmaceutical use, the No. 1 product in the plant-based pharmaceutical capsule material market, by next year. It aims to solidify its competitive edge in the plant-based capsule material sector and seize opportunities in the food material market, including alternative meat.
Lotte Fine Chemical is actively advancing its clean hydrogen ammonia business as a future growth engine. In February, it completed the purchase contract for an ammonia transport ship and established ammonia export facilities, and this month began its first export to Vietnam. The company plans to expand its ammonia distribution business to the Asian market and gain an advantage in the domestic power plant co-firing demand competition held this year, aiming to become an Asian clean ammonia hub.
Kim Yong-seok, CEO of Lotte Fine Chemical, said, "Profitability increases in high value-added products such as semiconductor materials and pharmaceutical materials were remarkable," adding, "We will complete the expansion of semiconductor and pharmaceutical materials without delay to maintain our world No. 1 competitiveness and accelerate the improvement of our business portfolio centered on high value-added specialty products."
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