Lotte Chemical expands factories in Daesan Complex

Industry

Published: 07 Feb. 2022, 16:40

Lotte Chemical expands factories in Daesan Complex

Hwang Jin-goo, far right, CEO of Lotte Chemical’s Basic Materials Division, South Chungcheong governor Yang Seung-jo, center, and Seosan City Mayor Maeng Jeong-ho pose after signing an agreement at the South Chungcheong Provincial Office Monday. [LOTTE CHEMICAL]

Lotte Chemical is investing 602 billion won ($502 million) in its ecofriendly and advanced materials business including building a factory for ethylene carbonate and dimethyl carbonate, key ingredients in the electric vehicle (EV) industry.

The company signed an agreement Monday with the South Chungcheong provincial and Seosan city governments to use a 67,500 square meters (727,000 square feet) plot in the Daesan Complex in Seosan, South Chungcheong. Hwang Jin-goo, CEO of Lotte Chemical’s Basic Materials Division, South Chungcheong governor Yang Seung-jo and Seosan City Mayor Maeng Jeong-ho attended the ceremony.

The Daesan Complex is already home to Lotte's naphtha crackers, polyethylene plants and butadiene facilities.

Of the 602 billion won, around 233 billion won will be used to build a 51,400-square-meter factory to make ethylene carbonate and dimethyl carbonate, core materials in electrolytes.

Electrolytes are one of four essential components for lithium-ion batteries along with cathodes, anodes and separators.

Korea is dependent on imports of ethylene carbonate and dimethyl carbonate. Lotte Chemical wants to make its own as the demand for EVs continues to grow.

Lotte Chemical will also invest around 220 billion won to expand its production capacity of ethylene oxide adduct, used in water reducers, a chemical product added to concrete used in tall buildings, bridges and dams. Its annual capacity, which is currently 330,000 tons, will be increased to 480,000 tons.

The company said it will use some 60 billion won to build a carbon capture and utilization facility, with the aim of completing the construction in the second half of 2023. The 2,500-square-meter facility will have an annual capacity of 200,000 tons, and carbon captured from other Lotte plants in the area will be used to make ethylene carbonate and dimethyl carbonate.

The remaining 89 billion won will be used to upgrade liquefied petroleum gas (LPG) production. At the moment, 10 percent of Lotte Chemical's ethylene output is made from LPG, which the company will increase to 30 percent.

The investment plans are in line with Lotte’s sustainability goals. Under the initiative dubbed “Green Promise 2030,” the chemical company said last year it will focus on four areas: Expanding sales of ecofriendly products, using recycled materials, reducing carbon emissions and improving waste systems to reduce their environmental impact.

“The investment is one of our key steps toward the Green Promise 2030 goal to expand the use of ecofriendly chemical materials,” said CEO Hwang from Lotte Chemical. "South Chungcheong Province and Seosan City have been our partners for a long time. Lotte Chemical will seek sustainable growth together with the local community."

BY SARAH CHEA [chea.sarah@joongang.co.kr]