Lotte Chemical has taken over a Vietnam high-tech material company to attain its vision of becoming the seventh-largest chemical industry in the world. The company is diversifying its overseas business portfolio, ranging from basic materials to high-tech materials.
Lotte Chemical acquired Vina Polytech in April. Vina Polytech produces materials for home appliances and mobile products. Lotte Chemical has invested billions of won to acquire it.
Shortly after the acquisition of Vina Polytech, Lotte Chemical set up a local corporation in Indonesia under the name of PT Lotte Chemical Engineering Plastic Indonesia. It established the company to build a compounding product plant that produces high-tech materials for automobiles. Lotte Chemical has expanded its business in Southeast Asia, which has been focused on basic materials, to include high-tech materials.
Southeast Asia is one of Lotte Chemical’s key markets. Major Southeast Asian countries including Indonesia, Malaysia and Vietnam are home to production facilities of large companies from around the world. This explains why Lotte Chemical has established a base in Southeast Asia.
In 2010, Lotte Chemical knocked on the door to the Southeast Asian market by acquiring Malaysia’s state-run petrochemical company Titan (currently Lotte Chemical Titan). Lotte Chemical is planning to create a large petrochemical complex in Indonesia by investing five trillion won. The petrochemical complex, when completed, will produce one million tons of ethylene annually.
Lotte Chemical aims to become the world’s seventh-largest chemical company with sales of 50 trillion won by 2030. For this, it has been expanding investment in the basic materials business, sharpening competitiveness and promoting growth in the high-tech material business. Lotte Chemical’s sales in 2019 amounted to 15.12 trillion won. It needs to more than triple its sales over a decade to attain the goal.
Source: Business Korea