Moon Seung-wook, Minister of Industry, "Diversifying Urea Import Sources to 3 Southeast Asian and 2 Middle Eastern Countries"

"Final Decision by 2-3 Countries"... Visit to Ulsan Lotte Fine Chemical Automotive Urea Production Site

[Sejong=Asia Economy Reporter Kwon Haeyoung] Moon Seung-wook, Minister of Trade, Industry and Energy, emphasized that the import sources of urea water, which is facing a severe shortage crisis, will be diversified to Southeast Asia and the Middle East, and that additional items posing supply chain threats will be selected in the mid-to-long term for meticulous and proactive supply chain management.

Minister Moon made these remarks on the 15th during a visit to the vehicle urea water production site of Lotte Fine Chemical in Ulsan. This visit was arranged to inspect the current production status of urea water amid the recent domestic shortage of urea and urea water, and to listen to on-site difficulties.

Minister Moon stated, "For mid-to-long-term diversification of import sources, we are currently prioritizing three Southeast Asian countries and two Middle Eastern countries as candidate nations. After consultations with the industry, we will finalize 2 to 3 countries, establish a framework for intergovernmental cooperation, and also consider government procurement to alleviate cost burdens when introducing from third countries."

He added, "Along with efforts to secure quantities, we will closely collaborate with related ministries such as the Ministry of Environment to ensure smooth supply and distribution of urea water in the market, so that the public experiences reduced inconvenience in daily life. In the mid-to-long term, we will thoroughly review measures to stabilize the supply chain of urea and urea water, including establishing a domestic production base, and reform the existing supply chain management system by additionally selecting potential supply chain threat items beyond urea, thereby promoting more meticulous and proactive supply management."

The Lotte Fine Chemical facility visited by Minister Moon is the largest urea water producer in Korea, producing half of the domestic demand. Although it faced difficulties in urea supply following China's pre-export inspection measures, it recently secured a total of 18,900 tons of vehicle-grade urea (equivalent to 2 to 3 months of domestic demand), and plans to increase production line operation rates to quickly produce and supply vehicle urea water.

The government is currently striving for the rapid domestic introduction of 39,000 tons of urea (14,000 tons for vehicle use) and 8 million liters of urea water secured from countries including Vietnam, Saudi Arabia, and Russia, aside from China.

Jung Kyung-moon, CEO of Lotte Fine Chemical, said, "As a result of close cooperation with the government from the early stages to improve the urea supply situation, we have achieved securing urea equivalent to 2 to 3 months of domestic vehicle urea water demand. We will continue to actively collaborate with the government to stabilize the supply of urea and urea water."

This content was produced with the assistance of AI translation services.