Lotte Chemical suspended operations at its Yeosu petrochemical facility in South Korea, shuttering ethylene glycol and ethylene oxide derivative production lines amid deepening financial troubles.
The December 3 closure of Plant 2 follows earlier shutdowns of PET lines at the same location. The company has initiated a “Box-Up” preservation process, filling equipment with nitrogen to prevent deterioration.
The petrochemical maker posted a 413.6 billion won ($318 million) operating loss in the third quarter, pushing its year-to-date losses to 660 billion won ($508 million). Company officials indicated that continued plant operation would only increase these losses.
About 70 employees from the affected facility have been reassigned, signaling a potentially permanent closure. The company has begun divesting underperforming assets and implementing cost-cutting measures at its Yeosu and Daesan operations.
The shutdown marks another setback for South Korea’s chemical sector, which has struggled with overcapacity and weak demand. The Yeosu complex, a major industrial hub, houses multiple chemical manufacturers whose operations could be affected by the closure.
