■ Dissolves LUSR, the synthetic rubber production company in Malaysia… Strategically withdraws a non-core, low-profit business to enhance efficiency of operation and financial soundness.
■ Planning to continue rationalization of businesses that do not fit the strategies of business portfolio.
■ President & CEO Lee Hun Ki stated, “The dissolution of LUSR is a part of restoration of financial soundness and change of business portfolio…” “…Will continue to proactively respond to the ever-changing market according to the directions of management strategies.”

LOTTE Chemical is set to dissolve LUSR (LOTTE UBE Synthetic Rubber Sdn. Bhd.), a synthetic rubber production company in Malaysia.

As a part of its ongoing efforts to enhance its portfolio, LOTTE Chemical is shifting resources away from general-purpose petrochemicals to foster and strengthen new growth industries. This strategic shift includes withdrawal from non-core businesses, selling non-efficient assets, and inducing investments to mitigate business risks and improve financial stability.

LUSR, a joint venture established in 2012 with a 50:50 equity share between LOTTE Chemical and UBE Elastomer Co. Ltd., produces a synthetic rubber in Malaysia. The decision to dissolve LUSR reflects LOTTE Chemical’s strategic focus on core business areas, leading to a decisive reallocation of resources.

“The dissolution of LUSR is a part of restoration of financial soundness and change of business portfolio,” commented LOTTE Chemical’s President & CEO Lee Hun Ki. “We will continue to proactively respond to the ever-changing market according to the directions of management strategies.”

LOTTE Chemical’s Basic Chemicals Division aims to reinforce its role as a cash cow through Asset Light and maximization of operation efficiencies, targeting to reduce its share in the portfolio to below 30% by 2030.