Lotte Chemical Corp. unveiled plans to raise 1.4 trillion won ($1.1 billion) by monetizing its stakes in overseas subsidiaries, marking a significant shift in the South Korean petrochemical maker’s asset management strategy.
The company will secure 660 billion won by year-end through a 40% stake sale in its U.S.-based ethylene glycol unit, Lotte Chemical Louisiana LLC. The transaction will reduce LC USA’s ownership in the Louisiana operation to 60% from full control.
The Seoul-based producer plans to generate an additional 700 billion won in 2025 by leveraging its interest in PT Lotte Chemical Indonesia. The Indonesian venture, established in 2016, is set to begin commercial production next year at its 1-million-ton ethylene facility.
The fundraising initiative aligns with Lotte Chemical’s broader strategy to improve its balance sheet and restructure its basic chemicals division. The company intends to reduce its portfolio exposure in this segment to below 30% by 2030, while maintaining it as a reliable revenue source through enhanced operational efficiency.
These moves come as Asian chemical producers face increasing pressure to optimize their asset base amid volatile market conditions and rising competition from Middle Eastern manufacturers.
