By: ICN Bureau
Last updated : March 31, 2026 12:37 pm
Plans to supply customized materials and produce Super EP for physical AI, aerospace, and space applications by constructing Korea's largest single compounding plant in Yulchon, Jeonnam
Lotte Chemical is proactively implementing the restructuring of its petrochemical business in accordance with the "Special Act on the Promotion of Corporate Vitality" through the spin-off of its Daesan plant and the merger of the integrated entity.
Lotte Chemical will spin off its Daesan NCC plant to merge with HD Hyundai Chemical, creating a 50:50 joint venture to accelerate its transition to high-value-added materials and restructure against oversupply. This landmark, government-approved deal aims to enhance competitiveness by consolidating production, closing the 1.1 million-ton cracker to improve efficiency.
Ultimately, Lotte Chemical and HD Hyundai Oilbank will each hold a 50% stake. This merger aims to be completed by September 2026, following the signing of the contract in June, with both companies investing 600 billion won each in the integrated entity.
Through this, the company intends to strengthen vertical integration from raw material procurement to final product production and enhance operational efficiency by establishing an integrated production system. Furthermore, it will fundamentally strengthen manufacturing cost competitiveness and accelerate the transition to a portfolio centered on high-value-added products.
Lotte Chemical submitted an additional business restructuring plan in December 2025 at the Yeosu Industrial Complex involving the integration and adjustment of redundant facilities with Hanwha Solutions, DL Chemical, and Yeochon NCC. With the submission of a detailed plan on March 20, the company is accelerating the improvement of its business fundamentals.
Along with this preemptive business restructuring, Lotte Chemical is proceeding rapidly with the transition to high-value-added businesses. The company plans to expand the proportion of functional materials to over 60% by 2030, strengthen its chemical business portfolio, and concentrate its capabilities on transforming into a specialty chemical company that combines profitability and growth.
Its subsidiary, Lotte Engineering Plastics, is currently constructing the largest single compounding production plant in Korea, with an annual capacity of 500,000 tons, at the Yulchon Industrial Complex in South Jeolla Province. Commercial production has commenced on some lines, and the entire facility is scheduled for completion in the second half of 2026. This factory supplies customized high-performance materials to key industries such as mobility and IT, and plans to produce high-performance Super EP product lines for physical AI, aerospace, and space applications in the future.
Lotte SK Enerroot began commercial operation of a 20MW hydrogen fuel cell power plant in Ulsan in June 2025 and plans to sequentially construct four additional hydrogen fuel cell power plants by the end of 2026 to stably supply a total of 80MW of electricity for 20 years.
Lotte Air Liquide Enerhi completed the construction of Korea's largest 450bar high-pressure hydrogen shipping center in Daesan, South Chungcheong Province, and began commercial operation in November 2025. It is currently producing enough hydrogen to supply 4,200 passenger cars or 1,100 commercial hydrogen buses per day.
Lotte Energy Materials is supplying core materials to the domestic and international battery, ESS, AI, and semiconductor industries based on its technological capabilities in high-end copper foil and next-generation battery materials. In particular, the company is expanding its presence in the global market by increasing the supply of high-value-added circuit foil for AI through its only domestic circuit foil production base.
Handuck Chemical, a joint venture between Lotte Chemical and Japan's Tokuyama Corporation, is pursuing the expansion of additional production facilities based on its global No. 1 manufacturing capability for semiconductor developer (TMAH). TMAH is a core material for the microcircuit pattern development process in semiconductors and displays, and the company plans to expand its market dominance by constructing an additional developer production facility spanning approximately 9,800 pyeong in Pyeongtaek, Gyeonggi Province.
Lotte Chemical stated, "We will secure fundamental competitiveness through the rationalization of our business structure and accelerate our expansion into a high-value-added specialty chemical company."