Although both companies commented that "nothing has been decided yet," it appears that discussions are underway regarding various possibilities.
The background to this is the decline in orders due to China, which was a major exporter of naphtha cracking facilities (NCC), becoming a producer.
The two companies have agreed to acquire Daesan through a joint venture with HD Hyundai Oilbank, a major oil former seller and subsidiary of HD Hyundai, in which HD Hyundai Oilbank holds a 60% stake and Lotte Chemical holds a 40% stake.
HD Hyundai Chemical currently operates Lotte Chemical Co., Ltd., a chemical company. HD Hyundai Chemical has an annual production capacity of 850,000 tons of ethylene. If the two companies integrate their facilities, HD Hyundai Oilbank will take over Lotte Chemical's facilities and
One of the options being considered is for HD Hyundai Oilbank to provide cash or other assistance. Meanwhile, the South Korean government has announced a plan to improve the competitiveness of the petrochemical sector in 2024.
The government is pushing ahead with the restructuring of its chemical business. President Lee Jae-myung has also announced that he will enact a special law on petrochemicals, raising hopes that support measures linked to this will be enacted.
2025/06/16 09:32 KST
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