LUSR, which produces 50,000 tons of polybutadiene rubber a year, has been in the red since the plant launched commercial operation in 2015, except for 2021.“It is a 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 by 2030 amid growing competition from Chinese rivals in order to upgrade its portfolios and focus on new growth sectors.
The Korean company, which is expected to report a third straight year of losses since 2022, has been trying to dump unproductive assets while enhancing its 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 scale back its basic chemicals business while selling stakes in its overseas units to raise nearly $1 billion to cut debt.
The story "Lotte to liquidate rubber JV in Malaysia, sell overseas assets for $1 bn" has 496 words across 20 sentences, which will take approximately 3 - 5 minutes for the average person to read.
Which news outlet covered this story?
The story "Lotte to liquidate rubber JV in Malaysia, sell overseas assets for $1 bn" was covered 6 days ago by Korea Economic Daily, a news publisher based in South Korea.
How trustworthy is 'Korea Economic Daily' news outlet?
Korea Economic Daily is a fully independent (privately-owned) news outlet established in 1964 that covers mostly economy news.
The outlet is headquartered in South Korea and publishes an average of 15 news stories per day.
It's most recent story was published ago.
What do people currently think of this news story?
The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.