The Seoul-based firm will divest its entire 75.01 percent stake in LCPL to a consortium comprising Pakistan’s Asia Park Investment and the United Arab Emirates-based Montage Oil DMCC. The transaction is expected to close in the first half of 2025.
Lotte Chemical acquired LCPL in 2009 for approximately 14.7 billion won. The subsidiary operates a plant with an annual production capacity of 500,000 tons of purified terephthalic acid (PTA), a critical component in polyester fibers and plastic bottles. In 2023, LCPL reported sales of 532 billion won and an operating profit of 19.8 billion won.
Since 2022, Lotte Chemical has received 29.6 billion won in dividends from LCPL, bringing the total value of its exit from the unit to approximately 127.5 billion won.
The sale follows a failed attempt to offload the business to a local chemical company, a deal that collapsed due to regulatory hurdles. The company framed the divestiture as part of a broader strategy to streamline operations.
“We will continue to optimize our portfolio by divesting non-core assets to strengthen our competitiveness and operational efficiency,” a Lotte Chemical official said.
Lotte Chemical has been grappling with investor concerns over liquidity risks.
In November, its parent conglomerate, Lotte Group, pledged the Lotte World Tower as collateral to reassure creditors. The group’s chairman later warned affiliates of an “existential threat” to the business.
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