On the 25th, Lotte Chemical announced that it will liquidate LUSR (LOTTE UBE Synthetic Rubber Sdn. Bhd.), a synthetic rubber manufacturing company based in Malaysia.
LUSR is a joint venture established in 2012 with a 50-50 equity ratio between Lotte Chemical and Japan's UBE. It is a company producing synthetic rubber in Malaysia.
According to the company, based on strategic direction, LUSR was judged to be a non-core, low-profit business, and the decision to liquidate was made to improve operational efficiency and enhance financial soundness.
Lotte Chemical is restructuring its business portfolio centered on general petrochemicals, focusing resources on fostering and strengthening new growth businesses, and promoting portfolio advancement.
Additionally, efforts to improve financial soundness continue, including strategic business withdrawal, sale of inefficient assets, and attracting investment to manage business risks.
In particular, the basic chemicals sector plans to strengthen its role as a cash cow through 'asset light' (asset downsizing) and maximizing operational efficiency, aiming to reduce its portfolio share to below 30% by 2030.
Heun-gi Lee, CEO of Lotte Chemical, said, "The liquidation of LUSR is part of recovering financial soundness and changing the business portfolio," adding, "We will continue to actively respond to the changing market in line with our management strategy."
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