Lotte Chemical said on Oct. 28 (U.S. time) that it signed an agreement with DAK Americas, a polyester unit of the Mexican petrochemical company Alpek, to sell its shares in LC UK. Lotte Chemical will use the amount secured through the sale to repay LC UK's borrowing.
LC UK is a company that was acquired in 2010 by KP Chemical, which was merged into Lotte Chemical. It made 472 billion won in sales and 21.2 billion won in operating profit in 2018. The company decided to sell LC UK, judging that the LC UK does not match the mid- to long-term vision of Lotte Chemical.
Lotte Chemical is planning to establish the "Vision 2030" and change its business structure based on qualitative growth through selection and concentration.
To this end, the company plans to expand new businesses such as high value-added businesses and U.S. projects, and strengthen existing businesses by restructuring sluggish businesses and securing cost competitiveness.
In August, Lotte Chemical announced a merger of Lotte Advanced Materials to strengthen its portfolio of specialty products. It aims to concentrate its core capabilities as a global chemical company through fast and active decision-making.
"Lotte Chemical will speed up the portfolio adjustment to move forward a global chemical company through the Vision 2030. Through this, we will do our best to achieve sustainable growth and enhance shareholders' value, " said Lotte Chemical CEO Lim Byung-yeon.