The company achieved a turnaround in its basic materials sector despite the impact of the ongoing conflict in the Middle East, largely due to a lagging effect worth 250 billion won. Lotte Chemical stated, "The expansion of product spreads and the positive inventory valuation effect from rising naphtha prices at the end of the quarter were key factors in the improved performance." They added, "We are currently securing a stable supply of domestic naphtha and expect continued supply in the future," noting that current plant operating rates remain unaffected.
To strengthen the domestic petrochemical industry, Lotte Chemical is reviewing a restructuring of its business operations. During a conference call, the company indicated, "Considering the sluggish petrochemical market expected to persist over the next 2-3 years, we are contemplating shutting down one of the two naphtha cracker (NCC) units in Daesan and two of the four units in Yeosu."
At the same time, Lotte Chemical plans to expand its functional materials and high-value-added businesses in the long term. The company aims to produce 500,000 tons annually of engineering plastics, a high-value specialty material, at its single largest compounding plant, set to be completed within the year. Future plans include expanding the production lineup to include high-performance products like Super EP.
A Lotte Chemical representative stated, "We will continue to closely monitor external conditions and market situations to optimize production operations for stable material supply. Additionally, we will enhance competitiveness through business restructuring in basic chemicals and pursue a balanced portfolio to ensure our long-term growth strategy remains steadfast."
* This article has been translated by AI.
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