[Press Release] LOTTE Chemical-GS Energy promoting a joint venture for petrochemical business


LOTTE Chemical-GS Energy promoting a joint venture
for petrochemical business

█ LOTTE Chemical and GS Energy will join hands to invest in a large-size petrochemical business 
   in the scale of about 800 billion KRW.
█ For stable supply of polycarbonate materials and expansion of C4 oil business.

The representatives of LOTTE Chemical and GS Energy gathered at LOTTE Signiel in Jamsil, Seoul on July 15 and signed a contract to establish a joint venture (temporarily called LOTTE GS Chemical Inc.) to produce BPA (Bisphenol-A) and Mixed C4 products.

The joint venture will be established later this year and LOTTE Chemical will hold 51% of shares and GS Energy 49%.

The new joint venture will invest a total of 800 billion KRW through 2023 to construct a plant to produce 200,000 tons of BPA and 210,000 tons of Mixed C4 a year.  Th plant will be established in about 100,000 ㎡ property within LOTTE Chemical’s Yeosu Factory 4.  The estimated revenues a year is 1 trillion KRW with operating profits nearing 100 billion KRW.  The joint business is expected to contribute to the local economies by generating about 7,700 jobs for direct and indirect employment.

The companies are planning to strengthen businesses through strategic partnership.  LOTTE Chemical will receive BPA for producing PC at more competitive costs and expand the existing business for Mixed C4 products.

GS Energy expects to secure stability of business and reinforce portfolio in the petrochemical division by supplying Propylene, Benzene, and Mixed C4 to the joint venture through GS Caltex, a subsidiary.

“We are constantly striving to optimize product portfolio to actively keep up with the changes in the petrochemical industry and reinforce competitiveness,” said CEO Byeong-Yeon Lim of LOTTE Chemical.  “We will create synergies in the refinery and petrochemical industries with the capacities of LOTTE Chemical boasting the most advanced level of technology in Korea and knowhow in stable operation of factories.