Lotte Chemical Restructures Amid Petrochemical Decline
Lotte Chemical Corp. is shifting toward four growth areas: advanced materials, fine chemicals, battery materials, and hydrogen energy, while restructuring its petrochemical operations. This strategy follows a significant net loss in 2025 and aims to improve competitiveness and financial health.
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Lotte Chemical Corp. is restructuring its petrochemical operations while focusing on new growth areas including advanced materials, fine chemicals, battery materials, and hydrogen energy. The South Korean company reported a net loss of 2.49 trillion won (approximately US$1.7 billion) in 2025, prompting a reevaluation of its business strategy.
Collaborating with HD Hyundai Chemical, the firm plans to reduce naphtha cracking center capacity by 1.1 million tons at the Daesan complex. It is also pursuing a spin-off at its Yeosu site to merge with Yeochun NCC Co.
Operations at the largest compounding plant in Korea are expected to begin later this year, targeting sectors such as AI and aerospace. Additionally, Lotte's joint venture in hydrogen energy has initiated operations at a second fuel cell power plant, aiming for an 80-megawatt capacity.
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