Chemical Industry Association Welcomes Approval of First Daesan Petrochemical Restructuring Project

Full-fledged Restructuring of Lotte Chemical and HD Hyundai Chemical
"Hoping This Will Serve as a Primer for the Spread of Restructuring"

The Korea Chemical Industry Association has welcomed the government's approval of the first business restructuring project in the petrochemical industry.

Korea Chemical Industry Association Corporate Identity.

On the 25th, the association expressed strong support for the government's approval of the business restructuring of Lotte Chemical and HD Hyundai Chemical within the Daesan Industrial Complex, describing it as "the full-fledged starting point for restructuring the petrochemical industry."

This approval is the first case of business restructuring approval since the government announced its roadmap for restructuring the petrochemical industry in August last year. Within the industry, there is an assessment that it is highly symbolic, as the restructuring has moved beyond a mere declaration into the implementation phase.

The association highly evaluated the fact that, during the approval process, the Ministry of Trade, Industry and Energy, related ministries, relevant institutions, South Chungcheong Province, and the Korea Development Bank closely cooperated to secure swift approval and to put together a government support package that includes financial support, tax benefits, R&D, and regulatory rationalization. It also expressed expectations that, based on this case, discussions on business restructuring in other regions, such as the Yeosu and Ulsan industrial complexes, will gain momentum.

The association predicted that, through this business restructuring, vertical integration of refining and petrochemical facilities between Lotte Chemical and HD Hyundai Chemical will be promoted, and that by rationally adjusting NCC facilities, production efficiency can be maximized.

Eom Chanwang, Vice Chairman of the Korea Chemical Industry Association, said, "On behalf of the industry, I welcome and express my gratitude for the swift approval of the first petrochemical business restructuring project, made possible by the active cooperation of government ministries and related institutions."

He continued, "Now is the time when clear implementation by the industry is crucial," adding, "The association will also actively support companies' efforts to rationalize their facilities and move toward higher added value so that the first Daesan business restructuring can take root successfully and produce tangible results."

Vice Chairman Eom also emphasized, "To overcome the current structural crisis, effective government support is essential along with the private sector's self-help efforts," and added, "We request continued policy support so that this approval can serve as a primer for the further spread of restructuring going forward."

The association plans to continue cooperating with the government, the National Assembly, and the industrial sector to enhance the competitiveness of the domestic chemical industry and to establish a foundation for sustainable growth, and to actively support the successful completion of the ongoing restructuring of the petrochemical industry.