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LOTTE Chemical proactively restructuring its commodity petrochemical business… accelerating transition to high value-added specialty businesses.
2025.12.28
LOTTE Chemical proactively restructuring its commodity petrochemical business…
accelerating transition to high value-added specialty businesses.
■ LOTTE Chemical proactively restructuring its Daesan and Yeosu NCC operations… contributing to enhanced competitiveness of the petrochemical industry through a transition to high value-added and eco-friendly business structures.
■ Expansion of development and supply of customized high-performance specialty materials for key industries such as mobility and IT, construction of Korea’s largest compounding plant at the Yulchon Industrial Complex, and preemptive investment to enable future Super EP production.
■ Securing copper foil and AI circuit foil technologies for high-end batteries to provide customized supply for global markets. Full-scale operation of hydrogen fuel cell power generation and hydrogen distribution centers… Expanding the hydrogen ecosystem encompassing production, distribution, and utilization. Expanding production facilities for the world’s No. 1 semiconductor developer solution (TMAH) to enhance the competitiveness of Korea’s semiconductor industry.
■ Continued company-wide business restructuring and strengthening of financial soundness.
■ Expansion of development and supply of customized high-performance specialty materials for key industries such as mobility and IT, construction of Korea’s largest compounding plant at the Yulchon Industrial Complex, and preemptive investment to enable future Super EP production.
■ Securing copper foil and AI circuit foil technologies for high-end batteries to provide customized supply for global markets. Full-scale operation of hydrogen fuel cell power generation and hydrogen distribution centers… Expanding the hydrogen ecosystem encompassing production, distribution, and utilization. Expanding production facilities for the world’s No. 1 semiconductor developer solution (TMAH) to enhance the competitiveness of Korea’s semiconductor industry.
■ Continued company-wide business restructuring and strengthening of financial soundness.
Amid the structural transformation phase of Korea’s petrochemical industry, LOTTE Chemical is accelerating the integration and reorganization of NCC (naphtha cracking center) facilities and the advancement of its business portfolio. This reflects the company’s commitment to rapidly transition from a commodity petrochemical–centered business structure to a high value-added specialty materials company.
LOTTE Chemical is promoting the integration and reduction of NCC facilities centered on Daesan in Chungcheongnam-do and Yeosu in Jeollanam-do. This move is a proactive response to the government-led domestic NCC restructuring policy amid prolonged global oversupply.
In November, LOTTE Chemical submitted a business restructuring plan to merge its Daesan plant with HD Hyundai Chemical. Submitted one month earlier than the government’s original deadline, the plan was recognized as the first case in the industry and a model example.
The restructuring plan includes the physical spin-off of LOTTE Chemical’s Daesan plant, followed by a merger with HD Hyundai Chemical and the rational adjustment of overlapping facilities of both companies. The Ministry of Trade, Industry and Energy is currently reviewing the plan, with approval expected to be finalized in January next year.
LOTTE Chemical also submitted an additional restructuring plan at the Yeosu Industrial Complex to integrate and adjust overlapping facilities with Hanwha Solutions, DL Chemical, and Yeocheon NCC. Based on its firm commitment to scaling down commodity businesses, LOTTE Chemical plans to make a significant contribution to the domestic NCC capacity reduction target of up to 3.7 million tons and to cooperate sincerely with upcoming creditor due diligence.
Alongside the restructuring of the petrochemical industry, LOTTE Chemical is rapidly accelerating its portfolio transition toward high value-added and eco-friendly businesses.
To strengthen competitiveness in high value-added specialty materials, LOTTE Chemical established the “LOTTE Engineering Plastics” plant in Yulchon, Jeollanam-do, and began commercial production at some of its lines in October this year. As Korea’s largest single compounding plant with a total annual capacity of 500,000 tons, scheduled for completion in the second half of next year, the facility will supply customized high-performance materials to key industries such as mobility and IT. The company is also expanding facilities in advance to enable future production of high value-added Super Engineering Plastics (Super EP) based on its technological capabilities.
In the battery materials business, its subsidiary LOTTE Energy Materials is supplying core materials to domestic battery and ESS, AI, and semiconductor industries based on its high-end copper foil and next-generation battery material technologies. In particular, through Korea’s only circuit foil production base, the company is increasing the supply of high value-added circuit foil for AI applications, actively responding to changes in global market demand and expanding technology-driven product competitiveness.
In Ulsan, through its joint venture LOTTE SK Eneroot, the company began commercial operation of its first 20MW hydrogen fuel cell power plant in June this year. As a carbon-free eco-friendly power source, the plant will stably generate electricity for 20 years. By next year, the company plans to sequentially operate four hydrogen fuel cell power plants, supplying a cumulative capacity of 80MW. At the Daesan Petrochemical Complex, LOTTE Air Liquide Ener’Hy completed Korea’s largest 450-bar high-pressure hydrogen distribution center and began commercial operation in November. By securing technological capabilities across hydrogen production, distribution, and utilization and collaborating with diverse domestic and global partners, the company plans to lead the growth of the hydrogen industry ecosystem.
In addition to the expansion of battery materials and hydrogen energy businesses, LOTTE Chemical is also contributing to strengthening the competitiveness of Korea’s semiconductor industry. The company is expanding production facilities of Hantok Chemical, the world’s No. 1 semiconductor developer solution (TMAH) manufacturer jointly operated with Japan’s Tokuyama Corporation. A new developer solution production facility is being constructed on a site of approximately 9,800 pyeong in Pyeongtaek, Gyeonggi Province, and is scheduled to begin full-scale operation by the end of next year. TMAH is a key material used in the development process for fine circuit patterns in semiconductors and displays. Hantok Chemical plans to secure new demand, including from semiconductor mega clusters, to preempt the high value-added materials market.
While restructuring toward specialty materials and eco-friendly businesses, LOTTE Chemical is also continuously strengthening its financial soundness. Since last year, the company has closely reviewed its domestic and overseas operations and assets, consistently divesting inefficient businesses while concentrating capabilities on businesses with high future growth potentials. It has secured funds through its stakes in LCLA in the United States and LOTTE Chemical Indonesia (LCI) and approximately KRW 1.7 trillion in cash liquidity by liquidating LUSR, a synthetic rubber producer in Malaysia, and divesting non-core businesses including its Pakistan PTA subsidiary LCPL, the Daegu water treatment membrane business, and its stake in Japan’s chemical company Resonac.
LOTTE Chemical stated, “In line with the government’s policy direction for restructuring the petrochemical industry, we will responsibly fulfill our role by swiftly implementing business restructuring, while continuing innovation activities to enhance profitability and secure competitiveness through portfolio advancement and structural business transformation.”
LOTTE Chemical is promoting the integration and reduction of NCC facilities centered on Daesan in Chungcheongnam-do and Yeosu in Jeollanam-do. This move is a proactive response to the government-led domestic NCC restructuring policy amid prolonged global oversupply.
In November, LOTTE Chemical submitted a business restructuring plan to merge its Daesan plant with HD Hyundai Chemical. Submitted one month earlier than the government’s original deadline, the plan was recognized as the first case in the industry and a model example.
The restructuring plan includes the physical spin-off of LOTTE Chemical’s Daesan plant, followed by a merger with HD Hyundai Chemical and the rational adjustment of overlapping facilities of both companies. The Ministry of Trade, Industry and Energy is currently reviewing the plan, with approval expected to be finalized in January next year.
LOTTE Chemical also submitted an additional restructuring plan at the Yeosu Industrial Complex to integrate and adjust overlapping facilities with Hanwha Solutions, DL Chemical, and Yeocheon NCC. Based on its firm commitment to scaling down commodity businesses, LOTTE Chemical plans to make a significant contribution to the domestic NCC capacity reduction target of up to 3.7 million tons and to cooperate sincerely with upcoming creditor due diligence.
Alongside the restructuring of the petrochemical industry, LOTTE Chemical is rapidly accelerating its portfolio transition toward high value-added and eco-friendly businesses.
To strengthen competitiveness in high value-added specialty materials, LOTTE Chemical established the “LOTTE Engineering Plastics” plant in Yulchon, Jeollanam-do, and began commercial production at some of its lines in October this year. As Korea’s largest single compounding plant with a total annual capacity of 500,000 tons, scheduled for completion in the second half of next year, the facility will supply customized high-performance materials to key industries such as mobility and IT. The company is also expanding facilities in advance to enable future production of high value-added Super Engineering Plastics (Super EP) based on its technological capabilities.
In the battery materials business, its subsidiary LOTTE Energy Materials is supplying core materials to domestic battery and ESS, AI, and semiconductor industries based on its high-end copper foil and next-generation battery material technologies. In particular, through Korea’s only circuit foil production base, the company is increasing the supply of high value-added circuit foil for AI applications, actively responding to changes in global market demand and expanding technology-driven product competitiveness.
In Ulsan, through its joint venture LOTTE SK Eneroot, the company began commercial operation of its first 20MW hydrogen fuel cell power plant in June this year. As a carbon-free eco-friendly power source, the plant will stably generate electricity for 20 years. By next year, the company plans to sequentially operate four hydrogen fuel cell power plants, supplying a cumulative capacity of 80MW. At the Daesan Petrochemical Complex, LOTTE Air Liquide Ener’Hy completed Korea’s largest 450-bar high-pressure hydrogen distribution center and began commercial operation in November. By securing technological capabilities across hydrogen production, distribution, and utilization and collaborating with diverse domestic and global partners, the company plans to lead the growth of the hydrogen industry ecosystem.
In addition to the expansion of battery materials and hydrogen energy businesses, LOTTE Chemical is also contributing to strengthening the competitiveness of Korea’s semiconductor industry. The company is expanding production facilities of Hantok Chemical, the world’s No. 1 semiconductor developer solution (TMAH) manufacturer jointly operated with Japan’s Tokuyama Corporation. A new developer solution production facility is being constructed on a site of approximately 9,800 pyeong in Pyeongtaek, Gyeonggi Province, and is scheduled to begin full-scale operation by the end of next year. TMAH is a key material used in the development process for fine circuit patterns in semiconductors and displays. Hantok Chemical plans to secure new demand, including from semiconductor mega clusters, to preempt the high value-added materials market.
While restructuring toward specialty materials and eco-friendly businesses, LOTTE Chemical is also continuously strengthening its financial soundness. Since last year, the company has closely reviewed its domestic and overseas operations and assets, consistently divesting inefficient businesses while concentrating capabilities on businesses with high future growth potentials. It has secured funds through its stakes in LCLA in the United States and LOTTE Chemical Indonesia (LCI) and approximately KRW 1.7 trillion in cash liquidity by liquidating LUSR, a synthetic rubber producer in Malaysia, and divesting non-core businesses including its Pakistan PTA subsidiary LCPL, the Daegu water treatment membrane business, and its stake in Japan’s chemical company Resonac.
LOTTE Chemical stated, “In line with the government’s policy direction for restructuring the petrochemical industry, we will responsibly fulfill our role by swiftly implementing business restructuring, while continuing innovation activities to enhance profitability and secure competitiveness through portfolio advancement and structural business transformation.”
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