Lotte Group’s Chemical Business Unit (BU) has announced plans to invest about KRW 3.7 trillion ($3.1 billion) in South Korea by 2022.
Business Korea reported that Lotte Group is aiming to increase its global sales to KRW 50 trillion by 2030 as part of the expansion plans.
Lotte Group chairman Shin Dong-bin also has further plans to expand the chemical business in the future. Shin recently attended the inauguration ceremony of the Louisiana plant in the United States and held an exclusive meeting with U.S. President Donald Trump.
“We will expand production facilities in Korea and invest in chemical startups, thus contributing to boosting domestic consumption,” Lotte Chemical announced on May 27.
On May 24, Lotte Chemical signed an investment agreement with Hyundai Oilbank to build a heavy feed petrochemical complex (HPC) at a combined investment of KRW 2.7 trillion ($2.5 billion).
Once operational, this new facility will produce 750,000 ton of ethylene and polyethylene each and 400,000 ton of propylene annually. It will significantly reduce manufacturing costs as it uses oil residue as raw material.
“Lotte Chemical is also expanding production facilities at its Ulsan and Yeosu factories along with the construction of an HPC,” said Im Byeong-yeon, CEO of Lotte Chemical. “Based on the expansion of global production bases and domestic investment, the company aims to grow into the world’s seventh-largest chemical company with KRW 50 trillion ($42 billion) in sales.”
Lotte Chemical has been expanding its meta-xylene (MeX) plant in Ulsan, Korea and Polycarbonate (PC) plant in Yeosu in Korea by investing approximately KRW 370 billion ($311 million) since May 2017. Since January 2018, Lotte Chemical has been building purified isophthalic acid (PIA) production facilities in the Ulsan plant with investment of approximately KRW 50 billion ($42 million).Furthermore, Lotte Fine Chemical, a chemical affiliate of Lotte Group, announced that it would invest about KRW 115 billion ($97 million) at its Ulsan plant, and Lotte BP Chemicals plans to expand production facilities at its Ulsan plant.
Furthermore, Lotte Fine Chemical, a chemical affiliate of Lotte Group, announced that it would invest about KRW 115 billion ($97 million) at its Ulsan plant, and Lotte BP Chemicals plans to expand production facilities at its Ulsan plant.