DL Holdings Participates in 450 Billion KRW DL Chemical Capital Increase... "Investment for New Business"

A panoramic view of DL Chemical's HRPB (Highly Reactive Polybutene) production plant located in the Yeosu Petrochemical Industrial Complex

[Asia Economy Reporter Onyu Lim] DL Holdings, the holding company of DL Group (formerly Daelim Group), has stepped up to support DL Chemical's leap into a global petrochemical company.

DL Holdings announced on the 25th that it will participate in a 450 billion KRW rights offering conducted by DL Chemical. DL Chemical is a 100% unlisted subsidiary of DL Holdings. On the 24th, DL Holdings' board of directors resolved to participate in the rights offering to secure investment funds for DL Chemical's new business initiatives. Through this rights offering, DL Chemical's capital will increase from 1.2 trillion KRW to 1.65 trillion KRW.

DL Chemical's strategy is to expand its low-cost raw material-based business while advancing into special materials such as eco-friendly materials and medical new materials, aiming to become a top 20 global petrochemical company. Accordingly, it is accelerating various investment activities to secure future new growth engines.

On the 15th, DL Chemical announced the establishment of a joint venture with REXtac, the world's third-largest manufacturer of amorphous poly alpha olefin (APAO) adhesive materials, to enter the eco-friendly hygiene adhesive market. Earlier this year, DL Chemical completed the construction of a next-generation metallocene PE dedicated plant with a capacity of 250,000 tons based on proprietary technology, expanding metallocene PE production capacity to 530,000 tons, ranking third worldwide. Next-generation metallocene PE is highly durable and is gaining attention as a high-value eco-friendly product that can significantly reduce plastic usage. Last year, DL Chemical acquired CariflexTM, the global number one manufacturer in the medical synthetic rubber material sector, and is accelerating the expansion of its high-value medical material business through the expansion of its Brazilian plant.

Kim Sang-woo, Vice Chairman of DL Chemical, said, “This rights offering will give momentum to various new businesses that DL Chemical aims to pursue,” adding, “DL Chemical plans to continue expanding its business globally under the strategic direction of entering low-cost regions with raw material competitiveness for existing businesses such as PE, while actively increasing the proportion of advanced chemical materials business.”

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