Launch of LotteGS Chemical, a Joint Venture between Lotte Chemical and GS Energy

[Asia Economy Reporter Park Soyeon] Lotte Chemical and GS Energy have officially launched Lotte GS Chemical, a joint venture established together.

Lotte Chemical announced on the afternoon of the 13th through a public disclosure that it had established Lotte GS Chemical as of the previous day. On the 11th, Lotte Chemical completed the initial capital payment of 163.2 billion KRW to the joint venture and secured a 51% stake. GS Energy holds a 49% stake.

Through the joint venture, the two companies aim to directly employ 145 people and create over 7,000 indirect jobs, significantly contributing not only to providing youth employment but also to revitalizing the regional economy.

With the establishment of the joint venture, it is expected to produce 210,000 tons of C4 fractions and 200,000 tons of BPA annually, generating annual sales of 1 trillion KRW and operating profits exceeding 100 billion KRW. The inaugural CEO of Lotte GS Chemical is Executive Director Lim Donghee, head of the New Business Division of Lotte Chemical’s Basic Materials Business.

The Lotte GS Chemical plant will be built on a 100,000㎡ site within Lotte Chemical’s Yeosu plant. To this end, Lotte Chemical plans to invest a total of 800 billion KRW by 2023. The C4 fraction plant is scheduled to begin commercial production in the first half of 2022, and the bisphenol A (BPA) plant in the first half of 2023.

Established in 1976, Lotte Chemical is a top-tier chemical company in Korea, producing approximately 4.5 million tons of ethylene annually, a basic raw material for the petrochemical industry, through domestic and overseas production bases.

BPA is a product used as a raw material for polycarbonate (PC), a plastic used in electrical and electronic products and medical devices. C4 fractions are hydrocarbon mixtures used to produce synthetic rubber and artificial marble raw materials.

GS Energy was established in 2012 as an oil business holding company and is promoting crude oil and gas field development as well as LNG terminal projects.

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