KOREA (SOUTH): Lotte Chemical to merge its specialty chemicals unit
Lotte Chemical Corp., a major South Korean chemical company, said Thursday (22 August 2019) it has decided to merge with its wholly owned subsidiary as part of efforts to streamline its chemical business. Lotte Chemical said its merger with Lotte Advanced Materials Co. will be completed by 2 January 2020.
Lotte Chemical formerly owned a 90 percent stake in Lotte Advanced Materials after it acquired the company from Samsung Group in April 2016. It bought the remaining 10 percent stake from Samsung SDI Co. for KRW 279.5 billion (USD 231 million) on 30 July 2019. Lotte Chemical said the move is intended to help boost the company's competitiveness by bringing specialty chemicals businesses under the same wing and maximizing efficiency in management. The merger will also boost its annual polycarbonate production capacity to 460,000 tons. Lotte Advanced Materials currently produces 240,000 tons of polycarbonates a year.
Source: Yonhap News Agency, Seoul; 22 Aug 2019
(Syed Rashid Ali, Karachi, Pakistan)