Subsidiary Sambak LFT to Build New Compounding Plant with Annual Capacity of 500,000 Tons
Operations Targeted for Second Half of 2025... Plans to Expand to 700,000 Tons in Future
Lotte Chemical announced on the 1st that its functional advanced materials production subsidiary, Sambak LFT, held a groundbreaking ceremony for a new compounding plant with an annual capacity of 500,000 tons at the Yulchon Industrial Complex in Gwangyang, Jeollanam-do. This plant will produce compounding materials such as high value-added synthetic resins (ABS) and polycarbonate (PC) used in home appliances like TVs and refrigerators, IT devices such as mobile phones and laptops, automobiles, and medical devices. The plant is scheduled to begin operations in the second half of 2025.
At the groundbreaking ceremony held on the 30th of last month, Lee Hoon-ki, CEO of Lotte Chemical, stated, "We will invest more than 300 billion KRW in the Yulchon Industrial Complex by 2026 to establish the largest compounding production plant in Korea with an annual capacity of 500,000 tons, aiming to become the global No.1 functional advanced materials company. We will increase the recruitment of talented personnel and contribute to the local economy, striving to be a company that coexists with Jeollanam-do and leads regional development."
At the groundbreaking ceremony for the Sambak LFT Yulchon Industrial Complex factory on the 30th, Jeonnam Governor Kim Young-rok (second from the left), Lotte Chemical CEO Lee Hoon-ki, Suncheon Mayor Noh Kwan-gyu, and Lotte Chemical Advanced Materials Business CEO Lee Young-jun attended to celebrate the groundbreaking ceremony. [Photo by Lotte Chemical]
Sambak LFT plans to produce compounding materials at the newly established Yulchon Industrial Complex plant to enhance technological sophistication and production efficiency according to the products. The production capacity, currently at 500,000 tons, is planned to be expanded to 700,000 tons in the future. The existing plants in Asan and Yesan, Chungnam, will continue producing functional special compound materials such as LFT and TPO for automobiles and electrical and electronic applications.
Previously, Sambak LFT signed an agreement in 2021 with Suncheon City, Gwangyang City, and the Gwangyang Bay Area Free Economic Zone Authority to invest a total of 450 billion KRW in a 246,871㎡ (74,678 pyeong) site in Yulchon 1 Industrial Complex to carry out the first phase of the functional advanced materials manufacturing project. The site was purchased in May 2022, and since then, various preparations including design for the plant construction have been underway.
Sambak LFT aims to grow as a company responsible for producing advanced materials within the Lotte Group's chemical division, accumulating compounding production technology and securing production competitiveness to become a global specialized company producing high value-added compound materials in the future.
The groundbreaking ceremony was attended by Kim Young-rok, Governor of Jeollanam-do; Seo Dong-wook, Chairman of Jeollanam-do Council; Noh Kwan-gyu, Mayor of Suncheon; Kim Ki-hong, Vice Mayor of Gwangyang; Seo Young-bae, Chairman of Gwangyang City Council; Song Sang-rak, Head of Gwangyang Bay Area Free Economic Zone Authority; Lee Hoon-ki, CEO of Lotte Chemical; Lee Young-jun, Head of Lotte Chemical Advanced Materials Business; and Han Myung-jin, CEO of Sambak LFT.
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