Lotte Chemical Announces to Strengthen Specialty Chemicals Investment
Release time:
2024-07-29
Recently, Lee Hun Ki, President and CEO of South Korea Lotte Chemical Company, said that the company plans to transform its investment portfolio by 2030, no longer emphasizing basic petrochemicals, and will pay more attention to specialty chemicals. Lotte Chemical aims to achieve an enterprise value of more than KRW 50 trillion by 2030 through portfolio transformation. The company's basic chemicals division will strengthen its profitability by maximizing its asset-light operating model and improving operational efficiency, and reduce its proportion in the portfolio to below 30% by 2030. In 2023, basic chemicals will account for about 60% of the Group's sales revenue. In the first quarter of 2024, the operating loss of the company's basic chemicals business widened to 130 billion won from 52 billion won in the same period last year, and sales fell 1.5 percent to 3.5 trillion won. The company's advanced materials division will increase earnings and sales to achieve annual sales of 8 trillion won by 2030, up from 5 trillion won in 2023, with an EBITDA margin of 10% and only 8% in 2023. The fine chemicals division will focus on fostering environmentally friendly green materials business, increasing sales to 5 trillion won by 2030. In 2023, fine chemicals will be about 1.8 trillion won. Lotte Chemical plans to increase the EBITDA margin of its fine chemicals business to 23% in 2030 from 14% in 2023.
Recently, Lee Hun Ki, President and CEO of South Korea Lotte Chemical Company, said that the company plans to transform its investment portfolio by 2030, no longer emphasizing basic petrochemicals, and will pay more attention to specialty chemicals. Lotte Chemical aims to achieve an enterprise value of more than KRW 50 trillion by 2030 through portfolio transformation.
The company's basic chemicals division will strengthen its profitability by maximizing its asset-light operating model and improving operational efficiency, and reduce its proportion in the portfolio to below 30% by 2030. In 2023, basic chemicals will account for about 60% of the Group's sales revenue. In the first quarter of 2024, the operating loss of the company's basic chemicals business widened to 130 billion won from 52 billion won in the same period last year, and sales fell 1.5 percent to 3.5 trillion won.
The company's advanced materials division will increase earnings and sales to achieve annual sales of 8 trillion won by 2030, up from 5 trillion won in 2023, with an EBITDA margin of 10% and only 8% in 2023.
The fine chemicals division will focus on fostering environmentally friendly green materials business, increasing sales to 5 trillion won by 2030. In 2023, fine chemicals will be about 1.8 trillion won. Lotte Chemical plans to increase the EBITDA margin of its fine chemicals business to 23% in 2030 from 14% in 2023.
The company also plans to increase the sales revenue of its battery materials division from 645 billion won in 2023 to 7 trillion won in 2030. Lotte Chemical aims to triple the business's EBITDA margin to 18% by 2030.
Lotte Chemical's hydrogen division aims to achieve annual sales of 4 trillion won by 2030. In 2023, the sales of hydrogen energy business will be 645 billion won.
In addition, Rakuten Chemical will sell inefficient assets and exit loss-making businesses to improve profitability.
Key words:
Titanium dioxide-rutile | titanium dioxide-anatase | environmental protection-flame retardant | quality-filler
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