Lotte Chemical completely withdrew from PTA business

Recently, Lotte Chemical announced that it plans to sell its 75.01% stake in Lotte Chemical Pakistan Limited (LCPL) and completely withdraw from PTA business. This business divestiture is part of Lotte Chemical's medium-term strategy to strengthen its high-value-added special materials business.

LCPL is located in Qasim Port, Karachi, and produces 500000 tons of PTA annually. The company sold the business to Lucky Core Industries (LCI), a Pakistani chemical company, at a price of 192.4 billion won. LCI mainly produces PTA derivative polyester, 122000 tons of polyester polymer and 135000 tons of polyester fiber in Lahore every year, and 225000 tons of soda ash in Heulah every year.

Lotte Chemical said that the funds obtained from the sale of PTA business will be used to develop the existing market of high value-added products such as polyethylene, polypropylene, polyethylene terephthalate, and expand the business of special chemicals and enter the business of environmental protection materials.

In July 2020, Lotte Chemical stopped producing PTA at its 600000 t/a plant in Ulsan, South Korea, and transformed it into a facility for producing purified isophthalic acid (PIA). The current PIA capacity is 520000 t/a.