Lotte Jeongmil Chemical, Operating Profit of 129.5 Billion KRW... Five Consecutive Quarters of Record Sales

Completed Total Investment of 180 Billion in Cellulose Series
Responding to Growing Demand for Plant-Based Medicinal Capsules and Alternative Meat

[Asia Economy Reporter Oh Hyung-gil] Lotte Fine Chemical announced on the 28th that its operating profit for the second quarter reached 129.5 billion KRW, an increase of 140.3% compared to the same period last year.

Sales amounted to 686.3 billion KRW, up 62.7% from the same period last year. Despite the recent global economic downturn, the company has set a new record for the highest sales for five consecutive quarters since the second quarter of last year.

Lotte Fine Chemical explained that global supply chain issues led to supply disruptions such as a decline in competitors' operating rates, which overall increased product prices. Additionally, sales expansion was influenced by the proactive capacity expansion of the cellulose series in the Green Materials Business Division.

The Chemical Business Division recorded sales of 557.7 billion KRW, a 71.1% increase compared to the same period last year. Sales growth was notable in ammonia and chlorine-based caustic soda. The rise in natural gas prices due to the Russia-Ukraine war led to increased raw material costs for ammonia and higher electricity costs for chlorine-based competitors, resulting in a rise in international prices.

Sales in the Green Materials Business Division increased by 34.2% year-on-year to 128.6 billion KRW. This was driven by price increases due to rising raw material costs such as pulp, and the full-scale sales of expanded production volumes from the cellulose series factories for Meselose (a construction additive) and Anycoat (a pharmaceutical capsule raw material), which were completed in the second quarter of last year.

Furthermore, Lotte Fine Chemical completed the expansion of its cellulose series food and pharmaceutical material factory worth 37 billion KRW in May. Including the expansion investments of 115 billion KRW for Meselose and 23.9 billion KRW for Anycoat in the first half of last year, a total investment of 180 billion KRW has been completed in the cellulose series.

Accordingly, the annual production capacity for food and pharmaceutical materials increased from the existing 10,000 tons to 12,000 tons. The company plans to actively respond to the growing demand for plant-based pharmaceutical capsules and alternative meat applications.

A Lotte Fine Chemical official stated, "Thanks to the rise in international product prices caused by global supply chain issues and the early commissioning of high value-added cellulose series expansions, we have consecutively set records for the highest sales and operating profit in recent quarters. We will proactively respond to international market trends and expand business performance based on continuous investment in high value-added specialty products."

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