Lotte Chemical sells 75pc stake in Pakistani subsidiary for $69 million

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The logo of Lotte Chemical is seen at its office building in Seoul, South Korea on October 11, 2017. — Reuters
The logo of Lotte Chemical is seen at its office building in Seoul, South Korea on October 11, 2017. — Reuters

South Korea’s Lotte Chemical said on Thursday it has sold about 75 per cent stake in its Pakistani subsidiary to Dubai-based PTA Global Holding for $68.94 million (98 billion won).

The South Korean company is trying to restructure its portfolio under a government-led programme aimed at aiding loss-making petrochemicals in the country due to poor demand and abundant supply.

Lotte Chemical Pakistan produces 500,000 tons of high-purity terephthalic acid (PTA), used in polyester fibers, industrial yarns, and PET bottles, annually at its plant in Karachi.

Adnan Afridi has been appointed the firm’s chief executive officer following the stake sale, Lotte Chemical Pakistan said in a statement late on Wednesday.

“The acquisition marks the beginning of an exciting new chapter in the company’s journey — one defined by innovation, operational excellence, and strategic growth, positioning Lotte Chemical Pakistan as a key industrial growth agent for PET and PSF customers in Pakistan,” the statement said.

The statement also quoted Afridi as saying that the immediate focus was on “operational excellence and sustainable profitability”.

“We are optimising plant efficiency, improving reliability, and integrating advanced energy-saving technologies that will significantly reduce our production costs. This is not just about growth — it’s about setting a new standard of performance for the chemical sector in Pakistan,“ he said.

He said that improving operational efficiencies and energy-related initiatives would make the company more competitive and a key growth partner for Pakistan’s polyester and packaging industries.

Afridi said the company plans aggressive growth “through mergers and acquisitions to enable diversification and scale”.

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