The logo of LG Chem is seen at its office building in Seoul, South Korea, October 16, 2020. REUTERS/Kim Hong-Ji

LG Chem submits petrochem restructuring plan to government

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SEOUL, Dec ‌19 : LG Chem submitted a plan to restructure its petrochemical business to the South Korean government, the company said on Friday.

The plan is in response to the government's request for ‌the industry to restructure, LG ‌said, adding that it could not disclose details. 

DL Chemical Co., a major shareholder of another petrochemical company, Yeochun NCC, also submitted its plan along with another shareholder Hanwha ‍Solutions Corp to the government, a DL spokesperson said in a text message to Reuters.

Hanwha Solutions and Yeochun NCC did not ​immediately respond to ‌Reuters request for comment.

The two are among a group of companies running ​naphtha-cracking centres that are under pressure from the government's ⁠push to reduce annual ‌capacity by as much as 25 per cent.

In ​November, South Korea's HD Hyundai and Lotte Chemical submitted a plan to ‍the trade ministry in which Lotte would ⁠carve out part of its business to merge ​it with HD ‌Hyundai Chemical.

Source: Reuters

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