Isu Chemical announced on November 17 that it recorded a standalone operating profit of 14.8 billion won in the third quarter of this year. This marks an increase of approximately 6,600% compared to 200 million won in the same period last year. The cumulative operating profit for the first three quarters reached 17.3 billion won.
The company explained that improved profitability in the Linear Alkylbenzene (LAB) and its raw material, Normal Paraffin (NP) segments drove these results. The demand for LAB continues to rise as the use of premium detergents increases. Supply has decreased due to facility closures by some European companies and regular maintenance by competitors.
The NP segment, which is the main raw material for LAB, also performed strongly. The NP market continues to experience supply shortages due to delays in global capacity expansion, regular maintenance in major producing countries, geopolitical factors, and high energy costs in Europe.
Isu Chemical is also laying the foundation for growth in the eco-friendly sector. The company has begun commercial supply of bio-LAB and bio-NP products that use bio-based raw materials. Last year, it acquired ISCC PLUS international certification, establishing a production system based on eco-friendly raw materials. Isu Chemical is proactively responding to detergent manufacturers' demands for carbon reduction and tightening environmental regulations, and is working to enter the bio-surfactant market.
A representative from Isu Chemical stated, "Profitability has improved for both LAB and NP amid tight supply and demand conditions," adding, "We will continue to build a foundation for sustainable growth by expanding the supply of eco-friendly products."
The representative further explained, "Although global LAB capacity expansion is planned, the shortage of NP supply is unlikely to be resolved in the short term, so the current trend of improved profitability is likely to continue for some time."
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