LOTTE Chemical Makes Large-scale Investment in the Daesan Petrochemical Complex

to Strengthen Eco-friendly and Specialty Material Competitiveness and to Promote the Local Economy





█ On the 7th, Chungcheongnam-do Governor Yang Seung-jo, Seosan Mayor Maeng Jung-ho, LOTTE Chemical Basic Materials Business Division

    CEO Hwang Jin-koo and others gather at Chungnam Provincial Hall to hold investment MOU ceremony 

█ To invest approximately 602 billion KRW at the Daesan Petrochemical Complex... Strengthen eco-friendly and specialty materials competitiveness such

    as battery electrolyte organic solvent plant, CCU facility, EOA expansion, etc.

█ Chungcheongnam-do and Seosan-si to provide administrative and financial support for smooth progression of project... LOTTE Chemical to fulfill

    its social responsibilities for creating local jobs and energizing the economy

█ Basic Materials Business Division CEO Hwang Jin-koo, “This investment is a key step of Green Promise 2030 for expanding our eco-friendly specialty

    chemical materials business such as battery electrolyte organic solvent and carbon dioxide capture business, etc.”... “As a long partner that grew together

    with Chungcheongnam-do and Seosan-si that have grown together, we will strive to continue to develop together with the local community” 

█ Governor Yang Seung-jo, “We will actively provide support so that LOTTE Chemical, which is investing in eco-friendly materials to respond to the climate crisis

    and to realize carbon neutrality can continue to grow at the Daesan Petrochemical Complex and lead the Korean economy” 

█ Mayor Maeng Jung-ho, “We will assist investing companies through administrative support and develop into the center for the high-value new growth

    advanced chemical industry” 

LOTTE Chemical will make large-scale investments at the Daesan Petrochemical Complex to strengthen its competitiveness in eco-friendly and specialty materials. 

For this, LOTTE Chemical signed an investment MOU for the construction and expansion of plants with Chungcheongnam-do and Seosan-si at the Chungnam Provincial Hall. The event was joined by Chungcheongnam-do Governor Yang Seung-jo, Seosan-si Mayor Maeng Jung-ho, and LOTTE Chemical Basic Materials Division CEO Hwang Jin-koo.

LOTTE Chemical will invest approximately 602 billion KRW at a 67,500㎡ site within the Daesan Petrochemical Complex in Seosan to newly build an EV battery electrolyte organic solvent plant and CO2 capture and liquefaction facilities, expansion of the EOA and HPEO plant, and make the raw material facilities more efficient. 

First, a plant for highly pure EC (ethylene carbonate), which is an eco-friendly EV battery electrolyte organic solvent and DMC (dimethyl carbonate) will be constructed. Highly pure EC and DMC are the most typical organic solvents injected into electrolytes, which are one of the four main components of lithium-ion batteries. Organic solvents account for about 30% of the entire cost of electrolytes and have high growth potential, but it is a material that depends completely on imports. LOTTE Chemical plans to not only strengthen business competitiveness, but also contribute to the localization of materials through this investment.

LOTTE Chemical will complete the test operation of the CCU (Carbon Capture, Utilization) pilot equipment and construct a 200,000-ton CO2 CCU facility with the goal of beginning commercial production by the second half of 2023. LOTTE Chemical plans to inject the CO2 captured using this as raw materials for highly pure EC and DMC, which are materials for electrolyte organic solvents for EV batteries, while also selling it as raw materials for dry ice and semiconductor cleaning solutions. 

It will also expand the production line for the high value specialty material for construction called EOA (Ethylene Oxide Adduct) used as raw materials for water-reducing agents injected in concrete when building large structures such as skyscrapers, bridges, dams, etc. Through this, LOTTE Chemical’s annual EOA production yield will increase significantly from the existing 330,000 tons to 480,000 tons in the future. It will also increase HPEO (High Purity Ethylene Oxide) to 250,000 tons to procure EOA and highly pure EC and DMC raw materials.

LOTTE Chemical will begin works for efficient raw material equipment to make it possible to use the ethylene production raw material LPG (liquefied petroleum gas) from the current 10% to about 30% to strengthen competitiveness of its Daesan Plant. By selectively injecting raw materials flexibly according to the status of raw materials, it plans to reinforce operational competitiveness. 

With this investment, LOTTE Chemical will concretize its goals to strengthen eco-friendly and specialty materials, as well as the competitiveness reinforcement objectives of existing businesses that will support this in order to achieve its Vision 2030.

 Basic Materials Business Division CEO Hwang Jin-koo commented, “This investment is a key step of Green Promise 2030 for expanding our eco-friendly specialty chemical materials business such as battery electrolyte organic solvent and carbon dioxide capture business, etc.” He further added, “As a long partner that grew together with Chungcheongnam-do and Seosan-si that have grown together, LOTTE Chemical will strive to continue to develop together with the local community”   

Chungcheongnam-do and Seosan-si revealed that it will provide all necessary administrative and financial support so that LOTTE Chemical’s large-scale investment decision can be pursued smoothly.

Governor Yang Seung-jo stated, “We will actively provide support so that LOTTE Chemical, which is investing in eco-friendly materials to respond to the climate crisis and to realize carbon neutrality can continue to grow at the Daesan Petrochemical Complex and lead the Korean economy.”

Mayor Maeng Jung-ho stated, “I am pleased with this large-scale investment MOU with the global company, LOTTE Chemical,” while adding, “We will assist investing companies through administrative support and develop into the center for the high-value new growth advanced chemical industry”