Groundbreaking of Compound Factory at Gwangyang Yulchon 1 Industrial Complex

Petrochemical Companies Lotte Chemical and Sambak LFT

Break Ground on Advanced Materials Industry Investment in Gwangyang

On the 30th, Gwangyang City in Jeollanam-do announced that it held a groundbreaking ceremony for the compound factory of Lotte Chemical Corporation, a global petrochemical company, and its subsidiary, Sambak LFT Co., Ltd., at the Yulchon Industrial Complex project site.

The event was attended by Kim Young-rok, Governor of Jeollanam-do; Kim Ki-hong, Deputy Mayor of Gwangyang; Noh Kwan-gyu, Mayor of Suncheon; Song Sang-rak, Director of the Gwangyang Bay Area Free Economic Zone Authority; as well as key executives of Lotte Chemical including Lee Hoon-ki, CEO of Lotte Chemical; Lee Young-jun, CEO of Lotte Chemical Advanced Materials; and Han Myung-jin, CEO of Sambak LFT.

[Photo by Gwangyang City]

The first phase of the newly launched functional advanced materials factory will invest 450 billion KRW to establish a production process capable of manufacturing 500,000 tons of compound materials such as ABS and PC, and up to 850,000 sheets of building materials including artificial marble and e-stone, employing approximately 500 people.

The functional advanced materials produced by Sambak LFT Co., Ltd. are products that enhance the inherent functions of the product by mixing two or more chemical materials, and are used in automotive parts, leisure, and sports goods.

The factory, scheduled to begin operations in the second half of 2025, is expected to secure the largest domestic production scale of compound materials once operational.

Through this, Lotte Group’s chemical division will further solidify its advanced materials production system and contribute to strengthening the global competitiveness of the national functional advanced materials production industry.

Meanwhile, Lotte Chemical Corporation plans to review the second phase of the project, which includes the production of secondary battery separators and hydrogen tanks, in preparation for the expansion of the electric vehicle and hydrogen vehicle markets, signaling a full-scale push to strengthen eco-friendly new businesses.

Kim Ki-hong, Deputy Mayor of Gwangyang City, said, “I sincerely congratulate Lotte Chemical and Sambak LFT, a global functional materials production specialist company steadily advancing toward becoming a strong nation in materials, parts, and equipment, on the groundbreaking of the Yulchon compound factory.”

He added, “I hope this project will greatly help the local economy suffering from the four highs (high exchange rates, high prices, high interest rates, and high oil prices) and significantly contribute to the materials industry not only in our city but also in our country. We will actively provide the necessary support for this.”

Meanwhile, Gwangyang City plans to accelerate efforts to attract investments worth 3 trillion KRW this year to achieve the core task of the 8th municipal administration, which is ‘revitalizing the people’s economy and fostering new industries.’