Lotte Chemical CEO outlines leaner growth path to investors

Lotte Chemical CEO Lee Young-jun speaks during a CEO-investor meeting at NH Financial Tower in Seoul, Wednesday. Courtesy of Lotte Chemical

Lotte Chemical held an investor meeting in Seoul Wednesday, where CEO Lee Young-jun outlined a sweeping portfolio restructuring aimed at shifting the company away from commodity petrochemicals and toward four high-growth business pillars.

Speaking to major domestic institutional investors at NH Financial Tower in Yeouido, Lee said the company plans to streamline its basic chemicals business through early restructuring, while focusing on four growth areas: advanced materials, fine chemicals, battery materials and hydrogen energy.

In its basic chemicals business, Lotte Chemical’s Daesan unit is seeking a merger with HD Hyundai Chemical, a first-of-its-kind deal in Korea’s petrochemical industry, while its Yeosu complex has submitted a final restructuring plan to the government and is awaiting approval.

The company said it expects the restructuring to free up capital, which it would then redirect toward higher-margin, higher-growth businesses.

In advanced materials, subsidiary Lotte Engineering Plastics is set to begin full operation of what the company described as Korea's largest compounding plant, with an annual capacity of 500,000 metric tons, in the second half of this year. The company said it plans to expand product lines including Super Engineering Plastics to serve sectors such as physical artificial intelligence (AI) and aerospace.

In fine chemicals, Lotte Chemical said it will expand production of high-value pharmaceutical and food-grade materials and gradually grow its semiconductor chemicals business centered on tetramethylammonium chloride and tetramethylammonium hydroxide, key chemicals used in semiconductor manufacturing processes.

The battery materials unit will focus on high-value products including circuit foil for AI applications and high-end battery foil.

In hydrogen energy, Lotte Chemical’s joint venture Lotte SK Eneroot recently began commercial operations at Ulsan Hydrogen Power No. 1, its second hydrogen fuel cell power plant. Total capacity is expected to reach 80 megawatts by the end of the year.

This article was published with the assistance of generative AI and edited by The Korea Times.