South Korea's HD Hyundai, Lotte Chemical submit plan to restructure petrochemical businesses

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

SEOUL :South Korea's HD Hyundai and Lotte Chemical have submitted a plan to the industry ministry on restructuring their petrochemical businesses, the companies said in separate regulatory filings on Wedneday.

Under the plan, Lotte will spin off its business in Daesan city, South Korea, and merge it with HD Hyundai Chemical, in an effort to ease overcapacity at nathpha-cracking centres in the industry, the companies said.

The plan is part an industry-wide effort to ease a supply glut in South Korea's petrochemical sector. In August, President Lee Jae Myung administration pushed firms to cut as much as 25 per cent of the country's annual capacity, saying the sector was in "crisis" and needed to boost efficiency and raise margins.

Ten petrochemical firms agreed on the goal at the time and were asked to come up with their own plans.

Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.


This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading

Lotte said the merger is to increase efficiency and the stability of operations at their naphtha-cracking centres, without elaborating. The companies said they will also adjust business portfolios to focus on core businesses.

Lotte's naphtha cracking facilities in Daesan have a capacity of 1.1 million tons, while HD Hyundai's operations have a capcity of 850,000 tons.

HD Hyundai Chemical is a joint venture created by HD Hyundai Oilbank and Lotte Chemical in 2014.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here