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Lotte Chemical sells Indonesian stake for $448 million

Published: 06 Mar. 2025, 19:33

KIM JU-YEON
[email protected]

Lotte Chemical plant [LOTTE CHEMICAL INDONESIA]

Lotte Chemical sold its stake in its Indonesian subsidiary for 650 billion won ($448 million), structured as an equity swap excluding dividends and voting rights, and will use the funds to resolve its financial stability, the firm said Thursday.

The chemical firm sold 25 percent of Lotte Chemical Indonesia (LCI) to an undisclosed buyer. Previously, it held a 49 percent stake.

LCI was founded in 2016 to construct a petrochemical plant in Indonesia that could produce up to 1 million tons of ethylene. The plant is set to start commercial production this year.

The chemical firm has been selling shares and ownership in overseas subsidiaries to resolve its liquidity, including a 40 percent stake in Lotte Chemical Louisiana, its ethylene glycol producer in the United States, for 660 billion won in October. The firm also dissolved Lotte Ube Synthetic Rubber, its Malaysian rubber production business, in October and sold Lotte Chemical Pakistan in February.

“We will prioritize securing our financial soundness by stably arranging funds and conservatively reviewing new investments,” Lotte Chemical said.

BY KIM JU-YEON [[email protected]]