Lotte Energy Materials announced on May 22 that it has signed a stock purchase agreement with Relson Private Equity to sell a 90% stake in Lotte EcoWill. The company specializes in curtain wall construction, which involves creating a separate glass exterior wall outside concrete walls. Last year, Lotte EcoWill reported approximately 130 billion won in sales and an operating profit of about 12 billion won, with an EBITDA exceeding 10%, indicating strong cash generation capability. Lotte Energy Materials stated, "We decided to proceed with this sale to adjust our business portfolio toward future materials."
The company plans to concentrate more on securing the future competitiveness of its core copper foil business. The funds raised from this sale will be utilized for investments in four high-value-added product portfolios: AI circuit foils for data centers, ultra-thin foils for semiconductors, battery foils for energy storage systems (ESS), and battery foils for existing electric vehicle batteries.
At its Iksan plant in South Korea, Lotte Energy Materials aims to expand its production capacity for AI circuit foils from the current 3,700 tons to a total of 16,000 tons by 2027. The Malaysian plant will also focus on increasing production of battery foils for ESS, laying the groundwork for a structural turnaround this year.
Lotte's chemical division is undergoing a business restructuring to strengthen its core competitiveness. The company is continuing to reorganize its domestic basic materials business and divest unrelated operations while focusing on expanding functional materials and high-value businesses, striving to transition to a business model centered on advanced technology materials.
Additionally, Lotte Energy Materials announced last month that it would invest approximately 50 billion won in its Iksan plant, the only domestic production base for circuit foils, to complete the material industry value chain. Despite challenging market conditions due to the electric vehicle sector, the company is making bold investments to secure future competitiveness and restructure its business.
* This article has been translated by AI.
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