Lotte Chemical and GS Energy to set up petrochemical joint venture
Lotte Chemical Corp. is adding a chemical compound plant in its petrochemical complex in Yeosu, South Jeolla Province, South Korea. The plant will be completed by the end of the year through a joint venture with GS Energy Corp., an energy specialized holding company of the GS Group.
The two Korean companies signed the agreement this week to create a joint venture, tentatively named Lotte-GS Energy Company, which will specialize in producing chemical compounds like bisphenol A (BPA) and C4 fraction. BPA is a key material for polycarbonate plastics used in electronics and medical products while C4 fraction is a chemical compound used for making butadiene (BD) and tert-Butyl alcohol (TBA).
Lotte Chemical would hold a 51% interest in the new entity, with GS Energy owning the rest. The two firms plan to jointly invest USD 678.7 million through 2023 to build a plant capable of producing 200,000 tons of BPA and 210,000 tons of C4 fraction products a year. The joint venture will also enhance the price competitiveness of its polycarbonates.
The plant represents a significant economic endeavor as Lotte Chemical says the joint venture is expected to post USD846 million in sales and USD85 million in operating profit, while also creating 7,700 jobs.