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Lotte Chemical sells Pakistani affiliate for $68 million

Published: 19 Feb. 2025, 16:47

Lotte Chemical Pakistan's factory [LOTTE CHEMICAL PAKISTAN LTD]

Lotte Chemical said Wednesday it has sold its affiliate in Pakistan as part of its business reorganization efforts.

Lotte Chemical has sold its entire 75.01 percent stake in Lotte Chemical Pakistan (LCPL) to a consortium comprising AsiaPak Investments and Montage Oil for 97.9 billion won ($68 million), the company said in a press release.

The move comes after the company's profitability plunged due to the recent downturn in the petrochemical industry.

Lotte Chemical has secured 127.5 billion won by selling noncore assets and receiving unpaid shareholding gains from LCPL for the 2022–24 period, the release said.

Back in September 2009, Lotte Chemical acquired the 75.01 percent stake in a Pakistani purified terephthalic acid (PTA) company for 14.7 billion won under its expansion strategy.

For all of 2024, its net losses deepened to a whopping 1.8 trillion won from 39.2 billion won a year earlier.

Operating losses also widened to 894.7 billion won from 547 billion won during the same period, while sales rose 2.4 percent on year to 20.4 trillion won.

Yonhap