LOTTE Chemical Pursues Hydrogen Energy Business and Battery Materials Business in Earnest for 2030 Future Growth
LOTTE Chemical Pursues Hydrogen Energy Business and
Battery Materials Business in Earnest for 2030 Future Growth
█ LOTTE Chemical targets 50 trillion KRW in revenue by 2030... Held ‘2022 CEO IR Day’ for setting business directions and
announce business concretization plans for hydrogen energy, battery materials, recycled plastics, etc.
█ Newly established ‘hydrogen energy business unit’ to procure business leadership by implementing overseas ammonia
and constructing infrastructure... Plans to supply 1.2 million tons of clean hydrogen by 2030 by implementing blue and
green ammonia produced overseas domestically
█ Newly established ‘battery materials business unit’ for entry and growth of the eco-friendly mobility industry that has been
recording high growth
█ Goal to sell over 1 million tons of recycled and bio plastics by 2030
█ Looking to become first Korean petrochemical company to join RE100 by 2023... Plans to switch to 60% renewable energy by 2030
and 100% by 2050 through PPA agreements of domestic/overseas business places and using hydrogen energy
█ LOTTE Chemical Vice Chairman Kim Gyo-hyun, “By strengthening ESG competitiveness of existing businesses and entering new green
business, we will construct a sustainable system and grow into a company that repays the trust of shareholders”
LOTTE Chemical hosted the '2020 CEO IR Day’ for 20 major investment institutions in Korea.
At this 90-minute event held at the Yeouido Conrad Hotel from 4 p.m. on the 31st, LOTTE Chemical’s hydrogen, battery and recycling business strategies and ESG strengthening plans were announced with the attendance of Vice Chairman Kim Gyo-hyun, ESG Management Head Kim Yeon-seop, and New Business Division Head Kim Min-woo.
LOTTE Chemical will newly establish the ‘Hydrogen Energy Business Unit’ and ‘Battery Material Business Unit’ to actively respond to the fundamental changes of the petrochemical industry, and the Hydrogen Unit will be headed by Basic Materials Division President Hwang Jin-koo and the Battery Unit will be led by Advanced Materials Division Lee Young-joon. Each business unit will search to strengthen their position in their industries and additionally enter high-value materials businesses by constructing the basis for future growth and to focus on battery material business capacities by preoccupying the hydrogen market through the establishment and implementation of consistent strategies.
The Hydrogen Energy Business Unit will pursue gaining leadership in the entire hydrogen business process including production-transportation/distribution-utilization by procuring overseas ammonia and constructing infrastructure, while pushing forward with domestic implementation of blue and green ammonia produced abroad. Plans are to supply a total of 1.2 million tons of clean hydrogen domestically by 2030, while realizing a hydrogen business pursuance road map by expanding use of not only the charging business and generation business, but also mobility of group subsidiaries.
The Battery Materials Business Unit intends to grow as a core company of the EV-battery-material supply chain in preparation for the increased demand of eco-friendly cars and expansion of renewable energy, with the strategy of investing about 4 trillion KRW in order to achieve approximately 5 trillion KRW in revenue for related businesses by 2030.
In addition to LOTTE Chemical, LOTTE Fine Chemical and LOTTE Aluminum that are part of the group’s chemical unit have already begun direct and indirect investments in the four major battery materials, and discussions are being held on various synergy plans by constructing cooperative relations.
Furthermore, plans are in place to actively construct facilities while procuring technologies for physical and chemical recycling in order to sell over 1 million tons of recycled plastics by 2030 to preemptively respond to the regulations and policies of major countries around the world and the changing awareness of consumers regarding disposable plastics.
LOTTE Chemical is Korea’s top PET production company and it is currently building a 110,000-ton C-rPET plant by investing about 80 billion KRW in Ulsan Plant 2 back in 2021.
It is also looking to becoming the first Korean petrochemical company to join RE100 by 2023 to strengthen ESG management. Plans are to realize RE 100 by switching to 60% renewable energy by 2030 and 100% by 2050 through use of hydrogen energy and direct PPA (power purchase agreement) of renewable energy with domestic business places such as in Yeosu, Ulsan and Daesan, and overseas business places in Malaysia, Indonesia, and the US.
At this IR Day, LOTTE Chemical announced its three-year shareholder return policy, and through this, it announced that it will improve shareholder predictability to strengthen the trusting relationship with shareholders and the market.
This year, it will give interim dividends for the first time to stabilize the dividend cash flow, and plans to buy back 300 billion KRW in stocks over a period of three years from ‘22.
LOTTE Chemical Vice Chairman Kim Gyo-hyun commented, “By strengthening ESG competitiveness of existing businesses and entering new green business, we will construct a sustainable growth system and grow into a company that repays the trust of shareholders.”