Lotte Chemical sells JV stakes in China, plans to sell PTA unit in Pakistan
by ChemOrbis Editorial Team - content@chemorbis.com
According to media sources, South Korea’s Lotte Chemical sold its entire stake in joint ventures with Chinese partners as the company wants to focus on other profitable markets with rising sales of value-added, specialty products.
Accordingly, the company sold its stake in the JV, Lotte Chemical Jiaxing Corp to its local partner. The JV located in Jiaxing, Zhejiang Province, produces ethylene oxide adduct (EOA) and ethanolamine (ETA), raw materials for cement and detergents. This followed the company’s divestment of its stake in another JV, Lotte Sanjiang Chemical Co. in June, with an estimated value of 100 billion won ($74 million) from each of the two joint ventures.
With the sale of its stakes in the two joint ventures, Lotte Chemical is pulling out of its base petrochemical product manufacturing business in China. The company attributed this decision to the supply glut they face in China amid weak demand.
Furthermore, the company is also planning to sell its entire 75.01% stake in Lotte Chemical Pakistan Ltd. (LCPL), for 192.4 billion won ($155.8 million). The company produces 500,000 tons/year of purified terephthalic acid (PTA).
Accordingly, the company will use this money to upgrade existing petrochemicals such as polyethylene, polypropylene and polyethylene terephthalate to high-value-added products while expanding the output of advanced specialty materials and starting eco-friendly businesses.
Accordingly, the company sold its stake in the JV, Lotte Chemical Jiaxing Corp to its local partner. The JV located in Jiaxing, Zhejiang Province, produces ethylene oxide adduct (EOA) and ethanolamine (ETA), raw materials for cement and detergents. This followed the company’s divestment of its stake in another JV, Lotte Sanjiang Chemical Co. in June, with an estimated value of 100 billion won ($74 million) from each of the two joint ventures.
With the sale of its stakes in the two joint ventures, Lotte Chemical is pulling out of its base petrochemical product manufacturing business in China. The company attributed this decision to the supply glut they face in China amid weak demand.
Furthermore, the company is also planning to sell its entire 75.01% stake in Lotte Chemical Pakistan Ltd. (LCPL), for 192.4 billion won ($155.8 million). The company produces 500,000 tons/year of purified terephthalic acid (PTA).
Accordingly, the company will use this money to upgrade existing petrochemicals such as polyethylene, polypropylene and polyethylene terephthalate to high-value-added products while expanding the output of advanced specialty materials and starting eco-friendly businesses.
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