Lotte chairman calls for maximizing Malaysian copper foil plant

Industry

Published: 18 Apr. 2024, 17:57 Updated: 18 Apr. 2024, 18:00

Lotte chairman calls for maximizing Malaysian copper foil plant

Lotte Chairman Shin Dong-bin, second from right, inspects finished cathode products at Lotte Energy Materials' factory in Malaysia. [LOTTE CORPORATION]

Lotte Chairman Shin Dong-bin raised the need to increase price competitiveness during his visit to Lotte Energy Materials' factory in Malaysia as the retail-oriented group seeks to bolster its standing in the chemical and materials business.

Located in Sarawak, Malaysia, the factory produces copper foils essential for the manufacturing of electric vehicle batteries.

Shin requested that Lotte Energy Materials "leverage Malaysia's locational advantages to enhance cost competitiveness and produce top-quality copper foil," according to Lotte on Thursday.

The conglomerate acquired Iljin Materials in 2023 for 2.7 trillion won ($1.96 billion) and rebranded it as Lotte Energy Materials, expanding its business in the secondary battery material sector. Since 2019, the subsidiary has been producing copper foil in Malaysia.

With the recent completion of plants 5 and 6, the Sarawak facility's annual production capacity has increased to 60,000 tons, 75 percent of Lotte's overall production capacity.

Lotte Energy Materials reported record-breaking revenue of 809 billion won last year, an 11 percent increase compared to 2022.

The copper foil producer aims to utilize Malaysia as a production hub for its overseas expansion.

"The Malaysian smart factory has secured cost competitiveness based on lower electricity and labor costs compared to domestic production," a Lotte official explained.

"Additionally, Malaysia's stable temperatures and humidity throughout the year are conducive to maintaining the quality of cathode materials," the official said. "Malaysia's utilization of hydroelectric power-generated electricity, thanks to abundant rainfall, has garnered positive responses from overseas clients emphasizing ESG management."

Lotte Energy Materials plans to establish cathode material factories in Spain and the United States to cater to the European and North American markets, on top of its current operations in Iksan in North Jeolla and Malaysia.

In a related move, Shin visited a new factory of Lotte Innovate's subsidiary, Evsis, in Cheongju in North Chungcheong, last month to oversee the company's fresh foray into the EV charger market.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]