Lotte Chemical Precision, Last Year's Sales and Operating Profit Reach Record Highs Since Establishment (Comprehensive)

"Positive Expansion of Eco-Friendly Materials... Active Investment in New Businesses like Clean Hydrogen"

[Asia Economy Reporter Moon Chaeseok] Lotte Fine Chemical announced on the 3rd that it recorded its highest-ever sales and operating profit last year.

According to a disclosure, Lotte Fine Chemical's consolidated operating profit for the past year was tentatively estimated at 244.5 billion KRW, a 75.6% increase compared to the previous year. Sales rose 44% year-on-year to 1.8201 trillion KRW. Net profit increased by 188.3% to 573.1 billion KRW.

Operating profit for the fourth quarter was 84.9 billion KRW, up 197.9% from the same period last year. Sales and net profit for the same quarter were 562.4 billion KRW and 213.6 billion KRW, respectively.

Lotte Fine Chemical explained, "With the economic recovery, front-end demand increased, leading to higher product sales," adding, "Due to power shortages in China and other factors, competitors' operating rates declined, causing supply shortages and driving up selling prices."

By segment, sales in the chemical business division recorded 1.4202 trillion KRW, a 55.2% increase from the previous year. This was due to rising ammonia prices following an increase in natural gas prices, and international price hikes caused by production disruptions among major producers of chlorine-based caustic soda and ECH (a raw material for epoxy coatings).

Sales in the green materials business division increased by 14.6% to 399.9 billion KRW. The expansion of the cellulose-based factory, an eco-friendly high value-added material, was completed in the first half of last year, and increased demand in front-end industries such as construction and pharmaceuticals contributed to expanded sales volume.

Lotte Fine Chemical is investing a total of 180 billion KRW in the cellulose series in line with Lotte Group's chemical affiliate's eco-friendly vision, "Green Promise 2030."

In the first half of this year, the company plans to expand its food and pharmaceutical production line by 37 billion KRW to strengthen its response to the food material market used in rapidly growing plant-based pharmaceuticals and alternative meats.

Additionally, Lotte Fine Chemical stated that it is focusing on discovering business opportunities in clean hydrogen and ammonia. A company official said, "Investment in eco-friendly high value-added materials has led to stable sales growth, and the chlorine series market conditions have improved, resulting in record-high performance," adding, "We will actively invest in clean hydrogen and ammonia businesses and new business areas to secure growth potential and strengthen ESG management (environmental, social responsibility, and transparent management)."

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