Hyundai Oilbank and Lotte Confectionery sign biodiesel deal

Industry

Published: 01 Aug. 2022, 18:04

Hyundai Oilbank and Lotte Confectionery sign biodiesel deal

From left: Lee Jin-sung, Lotte Confectionery's head of marketing and e-commerce, Chu Young-min, Hyundai Oilbank CEO, and Lee Seung-soo, pose during a signing ceremony held at Hyundai Oilbank's office in Jung District, central Seoul, Monday. [HYUNDAI OILBANK]

Hyundai Oilbank and Lotte Confectionery signed a deal to produce biodiesel using disposed oil, the oil refiner said Monday.

Through the deal, Lotte Confectionery will supply by-products made during the food manufacturing process, which are mostly used cooking oil, to Hyundai Oilbank, and the oil refining company will utilize those as feedstock for biodiesel.

Hyundai Oilbank is building a 10,000-square-meter (107,639-square-foot) biodiesel production facility at its Daesan plant in Seosan, South Chungcheong, the first stage of the oil refiner’s biofuel business. The new biodiesel production plant will be completed by 2023, with an annual production capacity of 130,000 tons, according to the company.

Hyundai Oilbank and Lotte Confectionery are also considering establishing a joint venture for overseas expansion and raw material procurement, while planning to broaden their cooperation to various areas outside feedstock procurement.

“HD Hyundai and Lotte Group have been strengthening the partnership with each other through Hyundai Chemical, a joint petrochemicals company between Hyundai Oilbank and Lotte Chemical,” said Lee Seung-soo, head of the global business division at Hyundai Oilbank.

“We expect this collaboration to mark another starting point for the two companies to explore new opportunities for joint businesses, taking it a step further from a simple business transaction.”

Hyundai Chemical was founded in 2014 as a 60-40 joint venture between Hyundai Oilbank and Lotte Chemical.

Lotte Chemical is 25.6 percent owned by Lotte Holdings, its largest shareholder, and Lotte Confectionery’s largest shareholder is also Lotte Holdings, with a 47.5-percent share.

Hyundai Oilbank and Lotte Confectionery signed a memorandum of understanding Monday at Hyundai Oilbank’s office in Jung District, central Seoul, with Chu Young-min, Hyundai Oilbank CEO, and Lee Jin-sung, Lotte Confectionery’s head of marketing and e-commerce, in attendance.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]