LOTTE Chemical's Daesan plant resumed operations after being shut down for 9 days due to a power outage.

On the 6th, the industry reported that LOTTE Chemical commenced 100% operations at its Daesan plant in the Seosan petrochemical complex. It is said that production resumed starting from some downstream processes on the 27th of last month.

On Nov. 25, in the Seosan Daesan Petrochemical Complex, the electricity supply to LG CHEM and LOTTE Chemical was cut off, halting factory operations while work continues to burn raw materials involved in the production process, emitting black smoke from the chimney. /Courtesy of Yonhap News.

LOTTE Chemical, along with LG CHEM, which also experienced a shutdown due to the power outage, is expected to resume full operations as early as this week. LG CHEM restarted production for processes including polyvinyl chloride (PVC) and synthetic rubber on the 28th of last month.

Previously, the two corporations shut down their plants entirely after the power supply was cut off on the 25th of last month, leading to the combustion of all the raw materials put into the production process until production could resume. When operations at the plant cease, proper products cannot be produced from the raw materials that have already been input, which can affect the equipment.

Observations suggest that the loss from this plant shutdown could amount to at least several hundred million won. However, it has been reported that the use of stockpiled inventory and the production of products at other plants have minimized the impact.

LOTTE Chemical and LG CHEM are investigating the causes of the power outage with electric suppliers, including Korea Electric Power Corporation, CGN Daesan Power, and their joint venture, CITEK. They plan to discuss ways to claim damages after determining the specific circumstances and scale of the losses.