Lotte to merge 3 petrochemical affiliates

South Korea’s Lotte Group, which has expressed a desire to eventually merge its three local petrochemical affiliates: Honam Petrochemical, Lotte Daesan Petrochemical and KP Chemical, is likely to start by merging Honam Petrochemical and Lotte Daesan in late 2008 or early 2009, industry sources said. The merged entity would have a total ethylene production capacity of 1.75 million metric tons per year (mtpy), surpassing the 1.72 million mtpy capacity of Korea’s current largest ethylene producer, Yeochon Naphtha Cracking Center. While this merger appears to be a certainty, KP Chemical’s future remains uncertain, sources added. Lotte Daesan Petrochemical Co. Ltd. was acquired by Honam Petrochemical and LG Chemical consortium in June 2003. (October 19, 2007)