LUSR, which produces 50,000 tons of polybutadiene rubber a year, has been in the red since it started commercial operation of the plant in 2015, except for 2021.“It is significant decision as liquidation will only allow the company to collect scrap metal values,” said an industry source in Seoul.“It shows the company’s strong determination to exit the business with limited growth.”Lotte Chemical aims to halve its basic chemicals business to less than 30% by 2030 amid the growing competition with Chinese rivals to upgrade its portfolios and focus on new growth sectors.
The South Korean company, which is expected to report losses for a third straight year since 2022, has been trying to dump ineffective assets while enhancing financial conditions.“The liquidation of LUSR is part of measures to improve our financial stability and change business portfolios,” said Lotte Chemical CEO Lee Hun Ki in a statement.
South Korea’s No.2 petrochemical manufacturer Lotte Chemical Corp.plans to liquidate its rubber joint venture in Malaysia to reduce its basic chemical business while selling stakes in its overseas units to raise nearly $1 billion to cut its debts.
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