Lotte Chemical Corp. is pushing deeper into specialty chemicals through its joint venture with Japan’s Tokuyama Corp., stepping away from a basic chemicals market dominated by Chinese producers.
The venture, Hantok Chemicals Co., will invest 130 billion won ($88 million) to build an ammonium salt facility in Pyeongtaek’s free economic zone. Construction is set to begin in the second half of 2025, with production starting by late 2026.
The facility will produce tetramethylammonium hydroxide (TMAH), a crucial chemical for semiconductor and display manufacturing. Hantok already controls 35% of the global TMAH market, leading among producers in South Korea, Japan, Taiwan and the US.
The expansion aligns with Lotte Group’s broader shift toward specialty chemicals. The conglomerate has committed 1 trillion won to eight specialty chemical plants in Korea, more than double its 443.8 billion won investment in basic chemical production.
The move comes as South Korea’s government promises regulatory relief and incentives for domestic petrochemical consolidation, aiming to help local producers compete with Chinese rivals.
Hantok secured a 32,000-square-meter plot in the economic zone and may further expand production capacity there, according to a company official.
