MENU

News

Press Releases

LOTTE Chemical transforms into a general chemical company expanding on high-value specialty & green businesses by 2030

2022.05.19


『LOTTE Chemical Announces 2030 Vision, Reorganizes Future Growth Strategy and Business Structure』

Lotte Chemical transforms into a general chemical company expanding on

high-value specialty & green businesses by 2030


lotte chemical


■ Announcement of the <LOTTE Chemical 2030 Vision> and corporate slogan 『Every Step for GREEN』…

    Declares to achieve 50 trillion KRW in revenue and achieve carbon reduction growth by 2030

■ Expand high-value specialty & green businesses to 60% of all revenue by 2030

  - Expand revenue to 20 trillion KRW by improving competitiveness for general petrochemical business

  - Expand revenue to 18 trillion KRW through high-value products and entering new business areas for the high-value specialty business 

  - Grow revenue to 12 trillion KRW for hydrogen energy / battery materials / recycled and bioplastics, etc. 

■ Construction of domestic hydrogen ecosystem and gain leadership in the hydrogen industry…

   - Invest total of 6 trillion KRW by 2030 and achieve production of 1.2 million tons of clean hydrogen and 5 trillion KRW in sales

■ Expand battery material solutions; become a leading global battery materials company…

   - Invest a total of 4 trillion KRW by 2030... Achieve 5 trillion KRW In sales through 4 trillion KRW in the four major lithium-ion

     battery materials sector and 1 trillion KRW in the next-generation battery sector

■ Become a leader in the age of circulating economy by expanding recycled/bioplastic businesses…

  - Produce 1 million tons of eco-friendly recycled products and invest 1 trillion KRW by 2030 and expand business

     to post revenue of 2 trillion KRW

■ ESG Vision/Strategy; Procure sustainable growth through ‘Green Promise 2030’… 

  - Pursue net-zero, create social value of circulation and coexistence, and green innovation



LOTTE Chemical announced its future vision and growth strategies at the Jamsil Lotte World Tower on the 19th. 


LOTTE Chemical held the ‘LOTTE Chemical 2030 Vision & Growth Strategy’ press conference with the attendance of Vice Chairman Kim Gyo-hyun

(LOTTE Group Chemical Unit Vice Chairman), Basic Materials Business President and Hydrogen Energy Business Director Hwang Jin-koo,

Advanced Materials Business President and Battery Materials Business Director Lee Young-joon, and ESG Management Division Director Kim Yeon-seop.


LOTTE Chemical 2030 Vision and Slogan


Announcement of the and corporate slogan 『Every Step for GREEN』… Declares to achieve 50 trillion KRW in revenue and achieve carbon reduction growth by 2030


- General business: Increase revenue from 11 trillion KRW to 20 trillion KRW through regional diversification and improved product competitiveness

- High-value specialty business: Increase revenue from 7 trillion KRW to 18 trillion KRW by expanding the specialty product group, adding value to

   general business products, and entering new business sectors such as bio materials, parts and chemicals, and eco-friendly materials

- Green business: Increase revenue to 12 trillion KRW through hydrogen energy / battery materials / recycled and bioplastics, etc.


Through this announcement, LOTTE Chemical unveiled its new corporate vision/slogan 『Every Step for GREEN』 with the goal of heading toward

an abundant and green world through advanced technologies. 

Furthermore, it presented its financial goal for 2030 as ‘achieving 50 trillion KRW in revenue’ and the non-financial goal of

‘carbon-reduced growth’ as part of its <2030 Vision>.


Vice Chairman Kim Gyo-hyun commented, “As our growth strategy to achieve the 2030 vision, we will pursue expansion of our general chemical business and high-value specialty business, while reorganizing our portfolio by expanding green businesses such as hydrogen energy / battery materials / recycled and bioplastics.” He added, “We will simultaneously improve energy efficiency and increase application of carbon capture and utilization (CCU) technologies, while achieving carbon-reduced growth through mid- to long-term investments such as implementing renewable energy.”


In order to achieve 50 trillion KRW revenue by 2030, △ in the general petrochemical business, LOTTE Chemical plans to expand revenue

from 11 trillion KRW posted in 2021 to 20 trillion KRW through regional diversification and improving product competitiveness. △ For the high-value specialty business, it plans to increase revenue from 7 trillion to 18 trillion KRW by expanding existing specialty product groups, adding value to general business products, and entering new business sectors such as bio parts/materials/chemicals and eco-friendly materials. △ It plans to build the green business to have revenue of 12 trillion KRW composed of 5 trillion KRW in hydrogen energy, 5 trillion in battery materials, and 2 trillion KRW in recycled and bioplastics.


In order to strategically implement the future green business and actively respond to fundamental changes in the petrochemical industry, LOTTE Chemical established the ‘hydrogen energy business division’ and ‘battery materials business division’ in March. The Hydrogen Energy Business Division is headed by Basic Materials Business President Hwang Jin-koo and the Battery Materials Division by Advanced Materials Business President Lee Young-joon. Each division is focused on the systematic fostering of new businesses and investments to preemptively lead the hydrogen market, while finding additional battery and high-value materials business to enter.


Announcement of the LOTTE Chemical green business growth strategy


At the press conference, LOTTE Chemical presented future green business strategies and goals in detail. It can be summarized as

△ producing 1.2 million tons of clean hydrogen and achieving revenue of 5 trillion KRW for the hydrogen energy business,

△ 5 trillion KRW in revenue for the battery materials business, and △ producing more than 1 million tons of recycled and bioplastics,

while posting revenue of 2 trillion KRW by 2030. 


Hydrogen energy business growth strategy


■ Construction of domestic hydrogen ecosystem and gain leadership in the hydrogen industry... Invest total of 6 trillion KRW by 2030 and

achieve production of 1.2 million tons of clean hydrogen and 5 trillion KRW in sales

   - Pursue implementation of foreign clean ammonia to prepare for increase in domestic demand

   - Produce clean hydrogen, expand hydrogen supply chain, increase use for generators/fuel cells/charging stations 

   - Hydrogen Energy Business Director Hwang Jin-koo stated, “We will do our best to contribute to the building of a green circulating

ecosystem focusing on hydrogen based on core capacities such as large-scale consumers, large supply chains, and eco-friendly technologies,

with the conviction that each and every step we take will contribute to a more abundant life in terms of environmental friendliness for the Republic of Korea”

     


LOTTE Chemical announced its plans to invest a total of 6 trillion KRW to produce 1.2 million tons of clean hydrogen by 2030, and distribute and use this to achieve annual sales of 5 trillion KRW. Furthermore, it will actively pursue implementation of foreign clean ammonia to prepare for increased domestic demand in the future.


Hydrogen Energy Business Director Hwang Jin-koo stated, “We will do our best to contribute to the building of a green circulating ecosystem focusing on hydrogen based on core capacities such as large-scale consumers, large supply chains, and eco-friendly technologies, with the conviction that each and every step we take will contribute to a more abundant life in terms of environmental friendliness for the Republic of Korea.”


LOTTE Chemical expects that by 2030, the hydrogen market will reach 5.8 million tons and 980 million tons globally, and predicted that there will be a demand for approximately 3.5 million tons for fuel cells and ammonia mixed fuel generators. In response to this, from the 1.2 million tons of its hydrogen production, it plans to supply 600,000 tons for generators, 450,000 tons for fuel cells and hydrogen gas turbines, and 150,000 tons for transportation. For the 600,000 tons for the generator demand, clean hydrogen will be produced overseas and transformed into ammonia, which is more economical in terms of storage and transportation, to bring into Korea.


Hwang Jin-koo commented, “We will utilize the strengths of LOTTE Chemical such as its network, investment history, and abundant global project experience, etc. to preemptively construct an infrastructure from production facility investments to transportation and distribution, and procure leadership for the entire process of the hydrogen industry in Korea.”


Battery materials business growth strategy


■ Expand battery material solutions; become a leading global battery materials company… Invest total of 4 trillion KRW by 2030...

    Achieve 5 trillion KRW In sales through 4 trillion KRW in the four major lithium-ion battery materials sector and 1 trillion KRW in the next-generation battery sector

   - Look to create synergy and pursue businesses with subsidiaries in the chemical unit focusing on LOTTE Chemical

   - Expand 4 major lithium-ion battery materials and next-generation battery materials business

   - Goal of establishing a supervising body in the US battery corporation within the first half of the year

   - Battery Materials Business Director Lee Young-joon, “While expanding our business platform speedily using various methods such as

    M&As with companies possessing relevant technologies, establishing joint ventures, and collaboration among LOTTE Group subsidiaries,

    we will actively target the US battery market, which is highly dependent upon imports and high profitability is expected”

     

LOTTE Chemical declared that it will keep up with the pace of increased demands for batteries and eco-friendly cars to become a leading global battery materials company through large-scale investments and its capacities in the battery business. 


It announced that it will invest a total of 4 trillion KRW by 2030 with the goal of posting annual revenue of 5 trillion KRW, and stated that it would achieve 4 trillion KRW in sales for the four major lithium-ion battery (LiB) materials [1] solution and 1 trillion KRW in next-generation batteries.


It also revealed its plan to enter foreign markets. Battery Materials Business Director Lee Young-joon explained, “The EV battery supply chain is being reorganized centering on the United States due to increased demand for EVs and more battery manufacturers building plants in the US,” and added, “We are planning to open a local office that will oversee the battery materials business in the US by the first half of 2022, and we are striving to improve synergy and competitiveness of the company within the chemical unit focusing on LOTTE Chemical through efforts such as implementing technologies of core companies and engaging in strategic collaboration.”


It will also pursue expanding its next-generation battery business. As there are growing demands for improving energy density and better safety, plans are to research and develop proprietary technologies such as lithium metal anodes, liquid electrodes, ESS batteries, etc. that are drawing attention as future solutions, and it plans to preemptively pursue battery business diversification by discovering prospective companies and through shares investments.


Recycle/bioplastic business growth strategy


■ Take leadership in the age of circulating economy by expanding the recycled/bioplastic business... Increase business to producing 1 million tons of eco-friendly recycled products and revenue of 2 trillion KRW

- Expand plastic recycling and bioplastic to more than 1 million tons

- Grow business by making total investments of 1 trillion KRW and recording sales of 2 trillion KRW by ‘30 by expanding existing PCR products,

  recycling chemical PET (r-PET), and commercializing pyrolysis technologies and biodegradable polymers

- ESG Management Division Director Kim Yeon-seop, “We will create social values of circulation and coexistence using our strengths in

  recycling technologies, infrastructure, and external partnerships”


LOTTE Chemical also announced its plans to expand the recycled/bioplastic materials business to over 1 million tons by making accumulated investments of 1 trillion KRW in accordance to the resource circulation trends.


In the case of plastic recycled products, it will △ expand PCR product sales to 440,000 tons through physical recycling such as PC, ABS and PP focusing on client companies in electronics, automobiles, and household appliances in the short term, △ and pursue production of 410,000 tons of chemical recycling such as recycled PET (r-PET) and 150,000 tons of PE/PP productions through the commercialization of pyrolysis technologies in the mid- to long-term by 2030.


It will also expand the bioplastic materials sector as well in order to respond to market regulations regarding packaging and consumable materials that are hard to recycle, while also keeping pace with the increased demand for biodegradable materials. Sales of Bio-PET that is currently being produced at the Yeosu Plant is scheduled to be increased from the current 14,000 tons to an annual 70,000 tons by 2030, and it will also review new bioplastic businesses such as biodegradable polyester called PBAT and marine biodegradable plastic called PHA.


ESG Management Division Director Kim Yeon-seop stated, “There is a continuous growth for recycled materials among client companies in electronics, automobiles, and household appliances as the use of regenerable materials are becoming mandatory and eco-friendly management of global companies are being reinforced among advanced nations,” while adding, “We will expand revenue of the recycled and bioplastic sector to 2 trillion KRW by 2030.”


LOTTE Chemical’s ESG Vision/Strategy, 『Green Promise 2030』


■ ESG Vision/Strategy; Procure sustainable growth through ‘Green Promise 2030’... - Pursue net-zero, create social value of circulation and coexistence, and green innovation 

- Achieve 2050 ‘net-zero’ by improving energy efficiency and implementing hydrogen and renewable energy

- ‘Create social values of circulation and coexistence’ by expanding sales of recycled plastics, responsible management of products/supply chain,

   and strengthening global safety and health

- ‘Pursue green innovation’ by initiating growth of a hydrogen ecosystem and expanding global businesses of battery materials


LOTTE Chemical will reestablish this year’s ‘GREEN PROMISE 2030’ with an ESG vision/strategy. Through this, it will pursue net-zero, create social value of circulation and coexistence, while pursuing green innovation 


First, in order to practice net-zero, it will improve energy efficiency and expand CCU application, while implementing hydrogen and renewable energy, thereby reducing emissions in 2030 by 25% compared to that of 2019, while achieving carbon neutrality by 2050. During the course of this, it will pursue membership of RE100. 


In order to create social value of circulation and coexistence, it plans to increase sales of recycled plastic products to more than 1 million tons by 2030, while systematically managing impact and risk on the economic, environmental and social sectors in the entire process of product raw materials, sales, use, and disposal. 


Furthermore, in order to lead sustainable future industries, it plans to preemptively construct global hydrogen ecosystem growth ranging from the production to the transportation, distribution and utilization of clean hydrogen by 2030, while also entering the battery materials market promptly to strengthen future high-value businesses.


Also, it will practice human rights management, strengthen human capital, engage in digital ESG business management, establish a transparent and fair corporate culture, and improve shareholder value to strengthen its ESG capacities and system.


TOP