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(Seoul=Yonhap Infomax) Su In Jeong = Lotte Chemical Corp. and HD Hyundai Chemical Co. have agreed to consolidate their naphtha cracking center (NCC) facilities, marking the first voluntary restructuring deal in South Korea’s petrochemical sector.
Lotte Chemical will spin off its Daesan plant into a separate entity, which will then merge with HD Hyundai Chemical. The move aims to rationalize NCC operations and establish an integrated production management system.
On the 26th, Lotte Chemical announced in a regulatory filing that it has jointly submitted an application for business restructuring plan approval to the Ministry of Trade, Industry and Energy, together with HD Hyundai Oilbank and HD Hyundai Chemical, as part of efforts to participate in the domestic petrochemical industry’s structural overhaul.
Lotte Chemical stated, “We will also pursue a transition toward high value-added and eco-friendly business structures, contributing to the enhancement of competitiveness in the petrochemical industry.”
The company added, “The plan is subject to review and approval procedures, and we will provide further updates in accordance with relevant regulations as soon as key matters are finalized. Regarding detailed operations, both companies will seek optimal solutions through additional consultations following business restructuring approval.”
Meanwhile, Minister of Trade, Industry and Energy Kim Jeong-gwan emphasized at the ‘Yeosu Petrochemical Companies Business Restructuring Meeting’ held at the Yeosu National Industrial Complex on the same day that “the deadline for submitting business restructuring plans, as announced at the Industrial Competitiveness Enhancement Ministers’ Meeting in August, is the end of December, and there are no plans to extend this deadline.”
sijung@yna.co.kr
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