On Tuesday’s earnings conference call, the company said it is aiming for a turnaround in 2026 centered on two strategies: reducing the share of commodity petrochemicals in its portfolio and strengthening foundations for future growth.
On efforts to cut capacity at its naphtha cracker operations, which it said have been slow to progress, the company said it will do its best to successfully wrap up the ongoing Daesan complex reorganization within the year.
Explaining the expected impact, Lotte Chemical said it will hold a 50% stake in the merged entity and that two crackers at each company are running at 80% to 85% utilization. It said shutting down one cracker entirely would deliver a portfolio improvement effect comparable to the volume reduction from that shutdown.
The company also laid out a roadmap for shifting toward specialty businesses. It said it will strengthen competitiveness in higher value-added products such as functional materials, as well as in the eco-friendly energy sector.
It plans to expand high value-added products such as Super EP, centered on the Yulchon compounding plant being built as South Korea’s largest single compounding facility. The plant, scheduled for completion this year, is currently operating 11 lines: five newly installed in October and six relocated in January.
Lotte Chemical added that it plans to complete construction of its U.S. cathode foil plant within the year and gradually expand its battery materials business, including functional copper foil products such as circuit foil for AI use.
It also plans to expand capacity in stages for products including semiconductor process materials and green materials for food and pharmaceutical uses. The company said it will additionally bring online a 60-megawatt hydrogen fuel cell power plant in Ulsan to strengthen competitiveness in its eco-friendly energy business.
Lotte Chemical said it plans to expand high-performance materials this year and push ahead with its eco-friendly energy business at a faster pace.
* This article has been translated by AI.
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