en.Wedoany.com Reported - Lotte Chemical in Korea is advancing the reorganization of its petrochemical business, planning to spin off its plant located in the Daesan region and merge it with HD Hyundai Chemical. Under the Special Act for the Promotion of Corporate Vitality, this merger is expected to be signed in June 2026 and completed in September. Both parties will invest 6 trillion won each into the newly established integrated enterprise, holding a 50% stake each. This move aims to strengthen vertical integration from raw materials to finished products, enhance operational efficiency, and accelerate the shift towards high-value-added products.
In December 2025, Lotte Chemical also submitted a business reorganization plan for the Yeosu Industrial Complex, involving facility integration with Hanwha Solutions, DL Chemical, and Yeochun NCC. By 2030, the company aims to increase the proportion of specialty materials to over 60%, focusing on becoming a profitable specialty chemical enterprise.
Lotte Chemical's subsidiary, Lotte Engineering Plastics, is constructing a 500,000-ton-per-year compounding plant in Jeonnam Yulchon. Part of the production line is already operational, with full completion planned for the second half of 2026. This plant will provide customized materials for the mobility and IT industries and plans to produce super EP products for physical AI, aviation, and aerospace.
In the hydrogen energy sector, Lotte SK Energy started operation of a 20MW hydrogen fuel cell power plant in Ulsan in June 2025. By the end of 2026, it plans to construct four power plants with a total capacity of 80MW. Lotte Air Liquide Energy Hy commenced operation of a 450-bar high-pressure hydrogen transport hub in Chungnam Daesan in November 2025, capable of supplying hydrogen for approximately 4,200 passenger vehicles or 1,100 commercial hydrogen buses per day.
Lotte Chemical is also strengthening its supply of key materials for batteries, semiconductors, and AI. Lotte Energy Materials is expanding the supply of high-end copper foil and AI circuit foil. Handeok Chemical, a joint venture with Japan's Tokuyama Corporation and a significant manufacturer of semiconductor developer (TMAH), plans to build additional production facilities in Pyeongtaek, Gyeonggi-do. TMAH is a crucial material used for developing circuit patterns in semiconductors and displays.
Lotte Chemical stated: "By rationalizing our business structure, we will secure fundamental competitiveness and accelerate our expansion into a high-value-added specialty chemical company."
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