The merged entity of HD Hyundai Chemical and Lotte Daesan Petrochemical, the first outcome of a business restructuring to strengthen the competitiveness of Korea's petrochemical industry, has officially launched.
HD Hyundai Chemical said it absorbed Lotte Daesan Petrochemical and changed its name to H&L Advanced, holding a launch ceremony on the 4th at its Daesan plant in Seosan, South Chungcheong Province, to begin full-scale operations.
About 180 key executives and employees attended the event, including Co-CEOs Cho Nam-su and Cheon Yang-sik of H&L Advanced, Lee Young-jun, head of the Lotte Group chemicals unit, and HD Hyundai Oilbank CEO Song Myung-jun.
H&L Advanced is an integrated entity launched through the "Daesan Project No. 1," promoted to enhance competitiveness through the restructuring of Korea's petrochemical industry. Equity is held 50% each by HD Hyundai Oilbank and Lotte Chemical.
The name incorporates the identities of HD Hyundai Chemical (H) and Lotte Chemical (L), while adding "Advanced" to signify continuing sustainable growth through change and innovation.
Under a business restructuring plan approved by the government, H&L Advanced will halt operations of 1.1 million tons of Lotte Chemical's Daesan naphtha cracking center (NCC) over the next three years and cut back operations of low-margin commodity facilities. The 1.1 million tons at the NCC is 30%–40% of the total reduction target of 2.7 million–3.7 million tons proposed by the government last year.
H&L Advanced plans to organically link competitiveness in refining and petrochemicals to optimize the entire process from feedstock procurement to product manufacturing. Through this, it aims to boost production efficiency, strengthen cost competitiveness, and maximize integration synergies.
In the mid to long term, it plans to expand its business portfolio focusing on specialty materials and eco-friendly products, advance its business structure centered on commodity petrochemical products, and secure a foundation for future growth.