Lotte Chemical Sells 275 Billion KRW Stake in Japanese Material Company to "Secure Liquidity"

Business Cooperation with Resonac to Continue

Lotte Chemical secured liquidity worth 275 billion KRW by selling its stake in the Japan-based company Resonac.

Lotte Chemical Yeosu Plant Overview. Provided by Lotte Chemical

On the 28th, Lotte Chemical announced that it sold its 4.9% stake in Resonac for 275 billion KRW. This stake was fully acquired in 2020, and combining this sale with dividends received so far, Lotte Chemical realized a profit of approximately 80 billion KRW.

Lotte Chemical stated that it will continue business cooperation with Resonac even after the stake sale.

Amid the recently deteriorating petrochemical market environment, Lotte Chemical is accelerating improvements in its financial structure by making swift decisions and focusing on selling inefficient businesses and assets. The main purpose of this Resonac stake sale was to enhance financial soundness by divesting non-core assets.

On the 6th, Lotte Chemical raised 650 billion KRW by entering into a Price Return Swap (PRS) contract for 25% of its 49% stake in Lotte Chemical Indonesia. Adding the 660 billion KRW secured last October by leveraging a 40% stake in its U.S. subsidiary, the company has secured a total liquidity of 1.3 trillion KRW.

Last month, it sold its Pakistan subsidiary for 97.9 billion KRW and is rapidly advancing the transition to a high value-added business structure by temporarily shutting down inefficient basic chemical lines domestically.

A Lotte Chemical official said, "This year, we aim to improve our financial structure and secure liquidity by enhancing operational efficiency," adding, "We plan to reduce production of general-purpose products and increase development and production of high value-added specialty and battery materials."

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