Lotte Chemical Corp.

Company Overview

Lotte Chemical produces a wide range of petrochemical materials from two factories in South Korea. It has a broad product portfolio, ranging from polymers, monomers, simple petrochemicals to megatrend products such as high-density polyethylene (HDPE) and polypropylene, as well as other downstream chemicals such as ethylene glycol. The integrated group also owns a naphtha cracker, which provides raw materials to its other brands. Though it is publicly listed, numerous Lotte firms have a controlling stake in Lotte Chemical.

Lotte Chemical offers styrene monomer, which is used to make PS, EPS, ABS, SB Latex, synthetic resin paint, Ion exchange resin, etc. Starex is the company’s styrene product, which is used in ABS, ABS alloy, ASA and EPS.

In January 2021, Lotte Chemical recently conducted due diligence on the elastomer division of Japan's JSR, which the company is preparing to purchase. JSR is the world's leading photoresist organization used in the semiconductor manufacturing process. The elastomer division manufactures synthetic rubber, anode binders for secondary batteries and latex. JSR ranks fifth in the world market for SBR solution, which is used for high-performance tires.

Lotte Chemical has formed a joint venture with Versalis, Italy. Since 2017, SSBR has been operating 100,000 tons annually for high-performance tires. Last year, however, the company lost tens of billions of won in this industry. New firms face significant challenges when attempting to join the SSBR market because of strict product certification processes, which are influenced by industry automakers. Should Lotte Chemical acquire JSR’s elastomer division, the company should be able to quickly comply with the product specifications required by global tire manufacturers. As the new flagship products of Lotte Chemical, including BD and SM are used as raw materials for synthetic rubber, the firm should achieve enormous synergies by acquiring JSR’s elastomer division.

Financial Highlights (FY 2025)

Company's Business Segments

• Basic chemicals : This segment offers foundational petrochemical products, including ethylene, propylene, butadiene, and aromatic compounds (BTX), derived from raw materials such as naphtha and LPG.
• Advanced materials : This segment provides a diverse portfolio of high-performance engineering plastics, ABS, and polycarbonate (PC) for automotive, IT, and home appliance industries, branded as INFINO and starex.
• Fine chemicals : This segment specializes in high-value, functional, and eco-friendly chemical products.
• Battery materials : This segment is a comprehensive, high-growth battery materials segment, aiming to become a key player in the global EV battery supply chain.