Lotte Fine Chemical Q2 Operating Profit at 8.7 Billion KRW, Down 49% Year-on-Year

Expectations for Improvement in Epoxy Resin Raw Material Market
Pursuing Completion of Pharmaceutical and Food-Grade Cellulose Plant by Year-End

Lotte Fine Chemical announced in a regulatory filing on July 30 that its operating profit for the second quarter of this year was provisionally tallied at 8.7 billion KRW, marking a 49.1% decrease compared to the same period last year. During the same period, sales increased by 0.6% to 424.7 billion KRW.

The company explained that, despite a decrease in production volume due to regular maintenance at the Ulsan plant, sales saw a slight increase as a result of higher product prices. However, it added that operating profit declined year-on-year due to one-off costs incurred during the maintenance process.
In the third quarter, performance is expected to improve as the international price of epichlorohydrin (ECH)?a key chlorine-based product?rises, and as the price of glycerin, a raw material used by ECH competitors, also increases.
Lotte Fine Chemical plans to complete the construction of its expanded plant for pharmaceutical and food-grade cellulose by the end of this year. The company is also working to expand its portfolio, including strengthening its competitiveness in the clean ammonia business.
Jung Seungwon, CEO of Lotte Fine Chemical, stated, "In the third quarter, we expect profitability to improve, focusing on chlorine-based ECH," adding, "We will continue to strengthen our high-value specialty business, including the completion of the pharmaceutical and food-grade cellulose plant expansion by the end of the year."