LOTTE Chemical submitted a business restructuring plan to the Ministry of Trade, Industry and Energy on the 26th, stating it will proceed with the partitioning of the Daesan plant business and merge with HD Hyundai Chemical. This is the first case of a corporation voluntarily undertaking business restructuring since the government said in Aug. it would push to reorganize the petrochemical industry's structure.
According to the business restructuring plan, LOTTE Chemical will merge with HD Hyundai Chemical after the partitioning of the Daesan plant business. Through this, it decided to rationally adjust some of the naphtha cracking center (NCC) facilities and general-purpose petrochemical product facilities. LOTTE Chemical also said it will establish an efficient operating system through vertical integration of refining and petrochemicals. In addition, it said it will accelerate a portfolio shift centered on high value-added products.
The Ministry of Trade, Industry and Energy said, "We plan to closely review the business restructuring plan received today at the Business Restructuring Plan Review Committee under the Act on Corporate Vitality Enhancement, examining whether it meets the requirements for restructuring, such as structural changes and business innovation, and whether it can achieve targets such as productivity and financial soundness."
Meanwhile, LOTTE Chemical and HD Hyundai Chemical also submitted a pre-merger filing to the Fair Trade Commission. The Fair Trade Commission said, "We plan to fulfill our duties as the competition authority under the Fair Trade Act by rigorously verifying and reviewing the need to prevent harm to small and medium-sized corporations and consumers, as well as the effects of improving efficiency from the perspective of the national economy."