Lotte Group is accelerating efforts to improve its business structure for qualitative growth by strengthening the competitiveness of technology and production infrastructure in its core businesses. Its strategy is to solidify the market dominance of existing businesses while also bolstering future growth engines such as eco-friendly energy, artificial intelligence (AI), and bio.
On the 31st, according to the industry, Lotte Fine Chemical recently became the first in the world to commercially introduce green ammonia, moving to take the lead in the carbon-free energy market. The volumes imported through Ulsan Port were stored in a nearby ammonia terminal. It is the first case in which cross-border green ammonia trade has been commercially realized.
Observers say the green ammonia value chain, which had remained at the planning stage, has materialized. Lotte Fine Chemical plans to use this to respond to a variety of carbon-free energy demands, including ammonia bunkering (ship fuel), co-firing power generation fuel, and clean hydrogen carriers.
In digital, Lotte Innovate has moved to expand its "physical AI" business that combines Generative AI and robotics. Aiming to commercialize a general-purpose physical AI-based "robot as a service (RaaS)," the company is developing Humanoid Robot units that can be used in the field.
Recently, in collaboration with Korea Seven, it unveiled AX Lab 3.0, a next-generation convenience store applying Humanoid Robot and AI technologies. It is a test bed where robots and AI handle store operations and a space to verify distribution automation technologies.
The logistics business is enhancing its global competitiveness with automation technologies. Lotte Global Logistics, together with the U.S. health supplement platform iHerb, built an automated fulfillment center in Denton, Texas, in December last year. It is a logistics hub that integrates the entire process from inbound to outbound. Based on this, the company plans to secure local clients and expand its logistics infrastructure in the Americas.
Lotte Global Logistics is also conducting field demonstrations of bipedal AI Humanoid Robot units for logistics together with the robotics firm Robros and Kyunghee University, Kwangwoon University, and Sogang University. Going forward, the company plans to deploy robots at the Jincheon fulfillment center, train them to perform outbound and packaging tasks, and accumulate operating data.
In bio, the focus is on strengthening CDMO (contract development and manufacturing organization) capabilities. Lotte Biologics has established a process that can perform everything from cell line development to drug substance production within about 8.5 months. Based on its Syracuse Bio Campus in the United States and its production base in Songdo, Incheon, the company plans to secure global clients.
It is also proceeding with business portfolio restructuring. Lotte Chemical pushed forward a restructuring of its Daesan petrochemical complex, creating the industry's first restructuring case. It will partitioning some businesses, merge them with HD Hyundai Chemical, a joint venture with HD Hyundai Oilbank, and halt operations of its existing naphtha cracking center (NCC). The plan is to improve the revenue structure by increasing the share of high-value specialty materials.
A Lotte Group official said, "Each affiliate is strengthening the foundational competitiveness of its business, including technology, raw materials, and production infrastructure, while expanding the base for future growth," adding, "We will enhance the competitiveness of our core businesses to continue qualitative growth of the portfolio."