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COMPANY PROFILE

CONTENTS
LOTTE GROUP 03
LOTTE GROUP’s Chemical Business Unit 05
LOTTE CHEMICAL CORPORATION 07

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LOTTE CHEMICAL CORPORATION

LOTTE GROUP

LOTTE’s “Value Line”


logo boldly illustrates its vision and
its commitment to providing
new and unexpected value
in every moment of your life.

The dot represents the starting point of your life,


while the line represents the path you will take together with LOTTE.
The round, diamond-shaped backdrop framing the symbol is modeled
after the base of LOTTE World Tower.
The symbol itself, which at first glance resembles an L, symbolizes
LOTTE’s modesty, dynamic spirit, and originality.
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

About LOTTE Financial Highlights


LOTTE is Korea’s 5th largest business group based on assets, and achieves

MISSION VISION steady annual growth with a stable financial structure.

We enrich people’s lives


by providing superior Lifetime FINANCIAL OVERVIEW (2018)
Business ranking in Korea
SALES BREAKDOWN BY BUSINESS (2018)

products
and services that Value 5 th
8.8% 33.3%
our customers love and trust. CHEMICAL·
Creator Assets(1)
12.7%
TOURISM·
FINANCE
CONSTRUCTION

KRW SERVICE

115.3
trillion

MANAGEMENT PRINCIPLES
2018
Total Sales

Transparent Strengthening Value-based On-site


Debt ratio(2)
KRW 84 trillions
Financial accounting
management core competencies management management
84.2 % basis

Annual Sales(3)
KRW
34.5% 10.7%
73.4
trillion
FOOD
RETAIL

* Source : May 2019 announcement by the Korea Fair * Since 2017, we have reported total sales on a
Trade Commission financial accounting basis rather than a managerial
* Note : Excluding public corporations and asset-based accounting basis.
⑴ Fair assets
⑵ Excluding financial corporations
⑶ Fair sales (based on domestic market sales,
excluding internal transactions) 4
LOTTE CHEMICAL CORPORATION

LOTTE GROUP’s
Chemical
Business Unit

LOTTE's Chemical Business Unit(BU)


has various business areas including
Olefin, Polyolefin, Aromatics, Rubber
Chain and Construction Materials.
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

LOTTE GROUP’s Chemical Business Unit The Global Presence


LOTTE's Chemical Business Unit(BU) has various business areas including Olefin,
Sales
Polyolefin, Aromatics, Rubber Chain and Construction & Interior Materials. Company │ Plant │ Office

LOTTE is expanding its portfolio to high value-added businesses such as fine LOTTE CHEMICAL (Basic Chemicals)

chemicals and engineering plastics through joint ventures, M&A. LOTTE CHEMICAL (Advanced Materials)
Seoul (Headquarter, Basic Chemicals)
LOTTE FINE CHEMICAL
Major Subsidiaries of Incheon
LOTTE CHEMICAL Uiwang (Office, R&D Center, Advanced Materials)
LOTTE CHEMICAL TITAN
LOTTE's Chemical Business Ansan/Pyeongtaek/Jincheon/Osan
Daesan LOTTE MCC
• LOTTE CHEMICAL Daejeon (R&D Center)
LOTTE BP CHEMICAL
• LOTTE FINE CHEMICAL Gumi
Yesan/Asan (SAMBAK LFT) Daegu LOTTE ALUMINIUM
• LOTTE CHEMICAL TITAN Wanju (DACC AEROSPACE)
• LC USA Gwangju Ulsan
• LOTTE MCC
Yeosu Busan
[JV with Mitsubishi Chemical (JPN)]
• LOTTE Versalis Elastomers
[JV with Versalis (ITA)]
China
Sanjiang
• LOTTE MITSUI CHEMICALS Jiaxing
[JV with Mitsui Chemicals (JPN)] Hefei USA
Jiaxing
• LOTTE BP CHEMICAL Slovakia Uzbekistan Shenyang
Louisiana
Tashkent Alabama
[JV with British Petroleum (UK)] Bratislava Shanghai
Surgil Los Angeles
Tianjin
• LOTTE ALUMINIUM Houston
Dongguan
Germany Poland Shenzhen
Russia Detroit
LOTTE FINE CHEMICAL LOTTE CHEMICAL TITAN LC USA Warsaw Moscow San Diego
Frankfurt Suzhou
Weihai
Hungary Qingdao Japan
Tatabanya Beijing Tokyo
Chongqing
Italy U.A.E Guangzhou
Hong Kong
Milano Dubai
Wan Chai
Turkey Mexico
Vietnam
(e-stone)Manisa Pakistan Tijuana
Istanbul Dong Nai
Karachi Hanoi
LOTTE MCC LOTTE BP CHEMICAL LOTTE Versalis Elastomers Ho Chi Minh
India
Nigeria
Bawal Malaysia
Lagos Peru
Chennai Kuala Lumpur Lima
Delhi Indonesia Pasir Gudang
Thailand Jakarta Tanjung Langsat
Merak Penang
Bangkok

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LOTTE CHEMICAL CORPORATION

LOTTE CHEMICAL
CORPORATION

LOTTE CHEMICAL is Korea's leading


chemical company, contributing to
the healthy and rich life of humankind
through creative challenges and
innovation.
LOTTE CHEMICAL CORPORATION

VISION

Becoming more than a leader in the Petrochemical Industry of Korea,


LOTTE Chemical is moving towards the position of
Global Top 7 chemical company.

Enhancement of Fulfillment of
Global Specialty Products New Value
Corporate Social
Expansion Business Portfolio Creation
Responsibility
Expansion
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

COMPANY OVERVIEW
AT A GLANCE STOCK INFORMATION

As of April 22. 2020 (%)

24.03
37.97
LOTTE LOTTE
Corporate Industry CEO
Corporation Corporation
LOTTE CHEMICAL Manufacture of Basic Shin Dong-bin, Kim Gyo-hyun (The largest shareholder) Other
(The largest
CORPORATION Organic Petrochemicals Lim Byung-yun, Lee Young-jun Other Stockholders
shareholder)
Stockholders 24.03
20.00
36.94
LOTTE Property &
Development
LOTTE Property &
Development

Establishment Headquarter Employees National LOTTE 20.00


Pension HOLDINGS
16 March 1976 300 Olympic-ro Total 10,678 Service CO.,LTD
(JPN)
(LOTTE World Tower 14-16F) Domestic 5,330 / Overseas 5,348 9.73 9.30
Including major
Songpa-gu, Seoul,
domestic & foreign subsidiaries
Republic of Korea

BUSINESS PERFORMANCE (2019) SUBSIDIARY

Annual Sales Operating Income Major Subsidiaries & joint ventures


KRW
151,235 Billion KRW
11,073 Billion

• LOTTE FINE CHEMICAL • HYUNDAI CHEMICAL [JV with Hyundai Oilbank (KOR)]

Market Capitalization • LOTTE CHEMICAL TITAN • LOTTE-GS Chemical [JV with GS Energy(KOR)]
Total equity
KRW
140,581 Billion KRW
76,777 Billion • LC USA
• KP CHEMTEC
• LOTTE MCC [JV with Mitsubishi Chemical(JPN)]
• LOTTE BP CHEMICAL [JV with British Petroleum(UK)]

Sales Status (Unit : KRW 1 Billion) Operating Income/Net Income Status (Unit : • SAMBAK LFT • LOTTE MITSUI CHEMICALS [JV with Mitsui Chemicals(JPN)]
29,297 KRW 1 Billion) • DACC AEROSPACE • LOTTE Versalis Elastomers [JV with Versalis(ITA)]
158,745 160,731 25,443
Operating Income
132,235
151,235 Net Income 22,846 • SEETEC • LC USR [JV with Ube Industries(JPN) & Mitsubishi Corp(JPN)]
117,133 18,372 19,462
16,111 16,419 • HANTOK CHEMICALS
9,907
11,073
7,567

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 9
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

HISTORY
Based on the history of challenge and innovation,
we are making a new history of creation to leap as the world's top chemical company.

Beginning 1970-1990 Growth 1990-2000 Leap 2000-2010 Takeoff 2010-


1976. 3 1991. 5 2003. 6 2012. 12
• Established Honam Petrochemical • Initial public offering • Acquired Hyundai Petrochemical • Merged KP Chemical and changed the corporation
(LOTTE CHEMICAL Daesan Plant) name to “LOTTE CHEMICAL”
1979. 6 1991. 6
2004. 7 2014. 4
• LOTTE Groups, • Completed construction of the
• Acquired KP Chemical • Established Hyundai Chemical (JV with Hyundai Oil Bank)
Acquired Honam Petrochemical Daejeon R&D Center
(Privatization completed) (LOTTE CHEMICAL Ulsan Plant)
2015. 10
1991. 12 • Completed the Uzbekistan gas project (UZ-Kor)
1979.12 • Completed construction of the NC plant 2006. 7
• Started commercial production • Established Honam Petrochemical Trading 2016. 5
at all plants 1995. 8 in Shanghai (The first subsidiary in China) • Acquired LOTTE ADVANCED MATERIALS,
• Acquired ISO 14001 certification LOTTE FINE CHEMICAL from SAMSUNG Group
1982.11 (Environmental management system) 2006. 8
• Achieved USD 100 Million Export 2017. 11
• Established LOTTE MCC
(JV with Mitsubishi Chemical) • Completed construction of the LOTTE Versalis Elastomers plant

2018. 5
2010. 11
• Signed HPC project with Hyundai Oilbank to jointly
• Acquired TITAN Chemicals build a new heavy feed petrochemical complex
(LOTTE CHEMICAL TITAN)
2019. 5
2011. 11 • Completed construction of the Ethane Cracking Center
• Established LOTTE MITSUI CHEMICALS and Ethylene Glycol Plant in U.S.
(JV with Mitsui Chemicals)
2020. 1
• Merged LOTTE Advanced Materials

2020. 2
• Established LOTTE-GS Chemical (JV with GS Energy) 10
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

DOMESTIC BUSINESS SITES


Headquarter Daejeon R&D Center
Address Address
LOTTE World Tower 14-16F, 300 115 Gajeonbuk-ro, Yuseong-gu, Daejeon
Olympic-ro, Songpa-gu, Seoul

Uiwang Office
Address
Gosan-ro 56, Uiwang-si, Gyeonggi-do

Ulsan Complex
Gumi branch Address
119 Sapyeong-ro,
Daejeon Nam-gu, Ulsan
Daegu branch
Daesan Complex branch
Main Products
Address Ulsan branch BZ, PX, OX, Me-X,
82 Dokgot 1-ro, Daesan-eup, PET, PIA, PTA
Seosan-si, Chungcheongnam-do Busan branch
Gwangju branch
Main Products
EL, LDPE, LLDPE, PP, EG, SM,
BD, BTX, EVA

Yeosu Complex Daegu Water treatment Complex


•Basic Chemicals • Advanced Materials Address
Address Address 35 Gukgasandan-daero 40-gil,
53 Yeosusandan 4-ro, 334-27, Yeosusandan-ro, Yeosu-si, Guji-myeon, Dalseong-gun, Daegu
Yeosu-si, Jeollanam-do Jeollanam-do
Main Products
Main Products Main Products UF Membrane for water treatment
EL, HDPE, PP, PC, PET, ABS, SAN, EPS, PC,
EG, BD, BTX E-Stone , Solid Surface 11
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

GLOBAL NETWORK Production Base


Sales Subsidiary
Sales Branch

Russia
Poland
Germany Slovakia Shenyang
Hungary Tianjin Korea
USA Detroit
Italy Uzbekistan China Japan
Los Angeles Alabama Turkey Sanjiang Jiaxing
Houston
Louisiana Pakistan Shanghai
San Diego Dubai Hefei
Dongguan
Mexico
Hong Kong
India
Thailand Vietnam
Nigeria Malaysia
Indonesia
Main Products
Peru
China
LC Jiaxing EP Performance Material, LFT, EPP
LC Hefei EP Performance Material
LC Shenyang EP Performance Material
LC Tianjin EP PC, ABS
LC Dongguan EP PC, ABS
LC Sanjiang EO
LC Jiaxing MEA, DEA, TEA, VPEG, TPEG
┃LACC, LCLA – U.S ┃Uz-Kor - Uzbekistan ┃LC TITAN ┃LC EP - China ┃Hungary LCHU
Asia
LC TITAN Malaysia NC(793KTA), PE, PP, BD
LC TITAN Indonesia PE
UZ-KOR Uzbekistan ECC(390KTA), PE
LCPL Pakistan PTA
LCVN Vietnam PC, ABS
Location Location Location Location Location Location
U.S Lake Charles, Louisiana, U.S. Ustyurt Gas Chemical Johor Bahru, Cilegon, Banten, Jiaxing, Hefei, Shenyang Hungary Tatabanya
LACC, LCLA (Louisiana, U.S.) ECC(1,000KTA), EG Complex(Surgil), Uzbekistan Malaysia Indonesia Tianjin, Dongguan
LC Alabama PP Compound Product Product Product Product Product Product
LCMX Mexico Performance Material, LFT, EPP
PC, ABS Ethylene 1,000KT, Ethylene 390KT, Ethylene 793KT, Polymer(PE) Polymers (PC, ABS)
Basic Petrochemicals Polymers (PC, ABS)
Ethylene Glycol 700KT Polymers(PE, PP)
Europe (BZ, TL, BD),
Polymers(PE, PP)
LCHU Hungary PC, ABS
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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

OUR BUSINESS

Basic Chemicals Advanced Materials

Basic/Intermediate High Performanced Construction & Water Treatment


Polymer Monomer
Petrochemicals Plastics Interior Materials Membrane

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

Basic Chemicals
The Business of LOTTE CHEMICAL's Basic Chemicals has a diverse product portfolio ranging from
Polyolefin, Monomers, Aromatics, based on the Ethylene production of No.1(4,500 Kilo Tonnes
per Annum) among domestic chemical companies.

Field of Business Production Site Employees

Basic/Intermediate Korea, China, Malaysia, 3,605


Petrochemicals, Indonesia, USA, Domestic 3,059
Polymers, Monomers, Uzbekistan, Pakistan Overseas 546
Aromatics
As of February 1, 2020

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

PRODUCT OVERVIEW - Basic Chemicals


Basic/Intermediate Petrochemicals Polymer Monomer
LOTTE CHEMICAL produces raw materials for various Our products range from daily necessities to advanced LOTTE CHEMICAL is producing monomer products for
chemical products including ethylene which is called "The materials, improving the quality of everyday life. construction, textile, and industrial products, and has
rice in the industrial society", based on diversified raw a high competitiveness by establishing a high-quality mass
materials such as naphtha, ethane, and LPG. production system

Basic Chemicals Intermediates C5 Product PE PP PET EO/EG/GE EOA PIA/PTA/MMA


• Cool • MPEG
• Ethylene • Me-X • IPM • HDPE • Injection • HPEO • BG • PIA
• HOT • VPEG
• Propylene • OX • DCPD • LDPE • Blow • MEG • BDG • PTA
• ACE • PEG
• Mixed C4 • PX • PIP • LLDPE • Yarn/Fiber • DEG • BTG • MMA
• BIO
• BD • SM • EVA • Film • TEG • BPG • PMMA
• HIT (produced by LOTTE MCC )
• BTX (Benzene, Toluene, Xylene) • TIPP
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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

Advanced Materials

LOTTE Chemical’s advanced materials offer a wide array of specialized material solutions
tailored for customers keen to innovate their products, ranging from interior/exterior parts of
home appliance and IT devices to energy, medical devices and cutting-edge automotive parts.

Field of Business Production Site Employees

Plastics, Korea, China, Mexico, 3,072


Construction Materials, Hungary, Vietnam, Domestic 1,659
Water Treatment Membrane India, Turkey Overseas 1,413
As of February 1, 2020

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

PRODUCT OVERVIEW - Advanced Materials

LOTTE Chemical aims to provide advanced solutions in all aspects of future mobility by
utilizing its cutting-edge material technology that reflects the latest trends in favor of
LOTTE Chemical offers a wide range of high-quality solutions generating new value and
lightweight products, unique design and eco-friendly properties.
innovation in everyday life.

ABS ABS Alloy PC PC Alloy POPELEN • Metal Plating ABS & PC/ABS • Low TVOC ABS • High Weatherable/Impact PC • Conductive/High Heat Resistant
• General • Transparent MABS • Thermoplastic Olefin (TPO)
• Polymerization • PC/ABS • High Weatherable ASA • Low Gloss ABS, PC/ABS • High Gloss/Low Gas PBT PA/PPE/CNT
• Extrusion • Scratch Resistant MABS • General • PC/ABS/GF SUPRAN • High Weatherable/Impact PC/ASA • Low Gloss, Emotional Feeling PC/ASA • High Gloss/Low Gas PC/ABS • Dimensional Stability PBT/ASA/GF
• Flame Retardant • General ABS/GF • Flame Retardant • Long-Fiber reinforced
• PC/GF • High Modulus PC/PET • Light Diffusion PC • High Modulus/Heat Resistant PP • High Flow/Surface Quality
• Heat Resistance • Flame Retardant ABS/GF • Eco-Friendly Thermoplastics (LFT)
• Medical • PC/ASA • High Flow/Impact PC/PBT • Light Blocking ABS, PC/ABS PBT/PET/GF
• Metal Plating HOWPOL • High Impact PP, LFT • High Flow PC/ABS • High Heat Resistant PPA
Specialty • PC/PET
/Painting • Eco-friendly Expanded
• Weatherability ASA, ASA/PMMA • PC/PBT • High Weatherable PP, LFT • High Heat/Chemical Resistant PC/ABS, PC/PBT • High Flow LFT
Polypropylene (EPP)
• High Weatherable ABS • High Flow/Paint-free PP • Chemical Resistant PC/ABS • High Heat Resistant LFT
EPS High Performance EP LOTTMER(TPE) • High Modulus/Impact • Low TVOC/Odor PP, LFT
• Luminous
• General • PPA • PBT • mPPE • Thermoplastic elastomer (TPE)
• Medical (General/Transparent) Continuous Fiber Reinforced • Surface Quality LFT
• Flame Retardant • Antimicrobial • PPS • PCT ADPOLY Composite (WLFT, 3D-Tow) • High Impact/Scratch Resistant, Expansion PP
• High-insulation • Eco-Friendly ABS, ABS/PET • Modified Polyolefin Resin
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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

PRODUCT OVERVIEW - Advanced Materials

We provide clean and safe water through world-class water


Acrylic solid surface with hygienic
property and various design applications treatment solutions based on system and process engineering
technologies suited to the water treatment industry.

Natural quartz engineered stone with


durability and natural beauty

Engineered porcelain surface with


natural and beauty

TECHNOLOGY SERVICE COST QUALITY



• Optimized process design • Outstanding engineering • Products with • safe quality of water
• based on self-developing materials technologies and specialists high energy efficiency after treatment
• • The technology of Membrane • Quality assurance through • Reduced operation and • Excellent rejection rate
fouling control after-sales service management costs
• Operation monitoring system

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

CAPACITY
(unit: KTA)
360

Polymer, Monomer,
Basic Synthetic Construction
Chemicals Rubber Materials, etc.

EL (Ethylene) 4,513 HDPE (High-density Polyethylene) 1,605 EG (Ethylene Glycol) 1,830


* Domestic production Rank No. 1 * Domestic production Rank No. 1 * Domestic production Rank No. 1

PL (Propylene) 1,697 LDPE/EVA 360 EOA (Ethylene Oxide Adduct) 230


(High-density Polyethylene / Ethylene-Vinyl Acetate)
* Domestic production Rank No. 1 * Domestic production Rank No. 1

SM (Styrene Monomer) 577 LLDPE (Linear Low-densityPolyethylene) 490 PIA (Purified IsophthalicAcid) 520
* World Production Rank No. 1

BD (Butadiene) 450 PP (Polypropylene) 1,820 PTA (PurifiedTerephthalicAcid) 1,100


* Domestic production Rank No. 1

BZ (Benzene) 766 PET (PolyethyleneTerephthalate) 520 MMA (Methyl Methacrylate) 260


- Including the production output(210KT) of LOTTE MCC(JV)

TL (Toluene) 339 ABS (Acrylonitrile-Butadiene-Styrene) 670 PMMA (Poly Methyl Methacrylate) 110
* The production output of LOTTE MCC(JV)

MX (Mixed Xylene) 139 PC (Polycarbonate) 460


* Domestic production Rank No. 1 Acrylic solid surface 970K Sheets
PX (Para-Xylene) 750 S-SBR (Solution StyreneButadiene Rubber) 100
Engineered stone 320K Sheets
* The production output of LOTTE Versalis Elastomers(JV)

OX (Ortho-Xylene) 210 EPDM (Ethylene Propylene Rubber) 96


* Domestic production Rank No. 1 * The production output of LOTTE Versalis Elastomers(JV)

MeX (Meta-Xylene) 360


* Domestic production Rank No. 1

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

PRODUCT PORTFOLIO (Unit : KTA)

LLDPE 490 EG 1,830 Basic Petrochemicals


• Daesan : 290 • Yeosu : 400 Polymer
• Yeosu • LACC (U.S.)
• LC TITAN : 200 • Daesan 730
Naphtha • Daesan Ethane LDPE 360 • LCLA (U.S.) : 700 Monomer
Craker • LC TITAN Craker • Uz-Kor (Uzbekistan) • Daesan : 130 Synthetic Rubber
• LC TITAN : 230 EOA 230
(Malaysia) • Yeosu : 130 Construction Materials
HDPE 1,605 • Daesan : 50
• Yeosu : 630 • LC TITAN : 585 & Other Product
• Uz-Kor : 390 • Jiaxing EP (China) : 50

Ethylene 4,513 EO GE 50
• Yeosu : 1,230 • LC TITAN (Malaysia) : 793 • Daesan : 50
• Daesan : 1,100 • Uz-Kor : 390
• LACC : 1,000 EPDM 96
• LOTTE Versalis Elastomers (JV) : 96

Propylene 1,697 PP 1,820


• Yeosu : 641 • Yeosu : 600 • LC TITAN : 640
• Daesan : 500 • Uz-Kor : 80
• Daesan : 550
• LC TITAN : 506 BD 450 S-SBR 100
• Yeosu : 160 • LC TITAN : 100 • LOTTE Versalis Elastomers (JV) : 100
• Daesan : 190
Mixed C4 MMA 260 PMMA 110
• Yeosu : 50 • LOTTE MCC (JV) : 210 • LOTTE MCC (JV) : 110

MTBE 20 ABS 670


• Yeosu : 20 • Yeosu : 670

Pyrolysis Gasoline BZ 766 SM 577 EPS 80


• Yeosu : 234 • Ulsan : 110 • Daesan : 577 • Yeosu : 80
• Daesan : 240 • LC TITAN : 182
Construction Phenol/Acetone 350/230
Materials
TL 339 Bisphenol-A 200 PC
PC 460
350
• Yeosu : 112 JV with GS Energy (KOR) • Yeosu : 460
Acrylic solid surface 970K Sheets • Daesan : 120 Ortho-Xylene 210 * Commercial production -1st half of 2023
• LC TITAN : 107 • Ulsan : 210

이스톤 stone
Engineered 320K 만 장
Sheets XL 139 Meta-Xylene 360 PIA 520
• Yeosu : 90K Sheets • Yeosu : 79 • Ulsan : 360 • Ulsan : 520
• Belenco(Turkey) : 230K Sheets • Daesan : 60
Para-Xylene 750 PTA 1,100 PET 520
• Ulsan : 750 • Ulsan : 600 • Yeosu : 70
* Source : 『2019 Korea petrochemical statistics』 • LCPL (Pakistan) : 500 • Ulsan : 450

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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

INVESTMENT PLANS

HPC Project (JV with Hyundai Oilbank)


Project
New project to build a heavy feed-based petrochemical PC(Yeosu), Me-X(Ulsan) Expansion
Overview complex (HPC) using heavy fuel oil as a feedstock through
Hyundai Chemical Corp. Total KRW 367.5 billion (USD 325 million)
Investment
Total
Investment KRW 2.7 triillion (USD 2.4 billion)
Expansion PC 110KT (460KT of total PC production after expansion)
Quantity Me-X 200KT (360KT of total Me-X production after expansion)
Product PE 850KT, PP 500KT
Commercial Commercial
2nd half of 2021 2nd half of 2019 (Completed)
Production Production
* HPC : Heavy Feed Petrochemical Complex Daesan

LOTTE-GS Chemical (Tentative name- JV with GS Energy)


Project New joint venture with the oil refiner to secure the raw
Overview materials for PC production and expand C4 products
Total Ulsan
Investment KRW 800 billion (USD 679 million)

BPA 200KT, Phenol 350KT, Acetone 220KT,


Product
C4 Products (BD 90KT, TBA 70KT, BN-1 40KT, MTBE 15KT)
Commercial
Production 1st half of 2023 Yeosu
Indonesia LINE Project
Total
Lake Charles (Louisiana) Investment USD 4.4 billion (Estimated)

Expansion Installation of naphtha cracker and petrochemical plants


Quantity to manufacture ethylene derivatives
Commercial
USA Shale Gas Project Production 2024 (Target Year)

Project Construction of Ethane Cracker(LACC) & MEG plant(LCLA)


Overview based on Shale gas in U.S. (The first Korean chemical firm
to operate a massive petrochemical complex in U.S.) Cilegon (Banten)
Total
Investment KRW 3.4 trillion (USD 3.1 billion)
EOA(Yeosu) Expansion New Business / Expansion
Product Ethylene 1,000KT, MEG 700KT
Total
Commercial Investment KRW 96 billion (USD 80 million) Joint Venture
Production 1st half of 2019 (Completed)
Expansion EOA 100KT (330KT of EOA production at expansion)
Quantity
Commercial
Production 2nd half of 2020
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTECHEMICAL
LOTTE CHEMICAL CORPORATION
CORPORATION

LOTTE CHEMICAL R&D : Daejeon


LOTTE CHEMICAL established the R&D Center of LOTTE Groups' chemical business part in 2005 by integrating the R&D centers of its subsidiaries.
It is actively researching new growth engines such as securing source proprietary technologies, developing high value added products for sustainable growth.

AT A GLANCE R&D VISION

Consolidate
current Vision-oriented R&D Global
businesses Center Top 7
for Competitive Chemical
Launch Advantage & Company
future Sustainable Growth
businesses

RESEARCH AREAS
Establishment Employees Location

1986 321 Daejeon


(Daedeok)
Polymer
HDPE, LDPE, LLDPE, EVA, PP
Polymer Engineering Engineering Plastics
PC, PC Compounds
As of March 1, 2020 plastics
PET, ABS, ASA

HISTORY
1976- 1991- 2011 Megatrend Functional Functional Materials
Megatrend
1990 2010 ~ Water Treatment Business materials Automotive Composites,
New Market Exploration Research (LFT, TPO, TPV)
1976. 3 1991. 1 2012. 12 Eco-Friendly Strategy areas EPP, Acrylic Solid Surface
• Established LOTTE Chemical • Moved to Daeduk R&D Complex • Changed name to "LOTTE CHEMICAL
and changed name to R&D Center“
1979. 4
"Daeduk R&D Center" Catalyst and Process Catalyst Monomer
• Launched Research and 2015. 4
Testing Department 2005. 2 • Established the 'Water Treatment Division' & Monomer
Metallocene·Zieglar-Natta Catalyst Monomer,
1986. 6
• Launched integrated R&D Center
2018. 1 New Process process EO, EG, EOA, PIA
by merging three R&D Centers of
• Established R&D Center • Established Seoul R&D Center
LOTTE's chemical companies
(Magok Industrial Complex)
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LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTECHEMICAL
LOTTE CHEMICAL CORPORATION
CORPORATION

LOTTE CHEMICAL R&D : Uiwang


LOTTE Chemical’s Uiwang R&D Center is building up a wide range of product portfolio by continuously pushing for the development of technology
while offering differentiated products and customized solutions by strengthening its R&D infrastructure.

Tech&Future Hall In-house test lab for UL certification Crea Lab/Color Lab

LOTTE Chemical delivers differentiated material Advance offering of solutions tailored for customers Design Solution of Materials/Color
solutions suitable for diverse business areas, drawing thanks to the in-house materials testing facility for Collaboration with customers, Meta trend & MYX
strength from the continued research efforts. safety certification. material, Mass production case for specific application.

Research Areas In-house Integrated Process


Certification Certification Result
Styrene & Engineering Construction &
General Product Plastics Interior Materials
Test Report Review

ABS, ABS Alloy, PC, PC Alloy, Acrylic Solid Surface UL 94 [Flame Retardant] Cert Lab
ASA, EPS, PP PBT, mPPE, PPS Engineered Stone
Engineered porcelain surface

- Asia-first UL 94 flame retardant cert in-house test lab (2012)


- Flame retardant test (HB, V, 5VB/5VA) & Review
UL RTI [Long-term Heat-resistance] Cert Lab

Customized Color Solution +55,000

- South Korea-first RTI (746B) long-term


heat-resistance cert in-house test lab (2018)
- Long-term heat-resistance test & Review
: High-temp. testing of materials (for more than 60,000 hrs.) 23
LOTTE CHEMICAL CORPORATION LOTTE GROUP LOTTE CHEMICAL BUSINESS UNIT LOTTE CHEMICAL CORPORATION

SUSTAINABILITY MANAGEMENT VISION

Creation of future values and fulfillment of social


responsibility as a Global Top 7 Chemical Company

Economic Environmental Social


Values Values Values
Maximization of profit for Reduction of environmental impact Contribution to the sustainable
our stakeholders & Enhancement caused by products and processes development of communities
of customer values & Expansion of eco-friendly business and local societies

Environment & Safety Social Contribution Mutual Growth


Compliance Management Ethical Management
Management
Operation of the compliance Internalization of a Fair and Investment in eco-friendly Enhancing corporate image and Establishment of fair trade practice
system by building global-level Transparent Management Culture equipment & product development improving external credibility by and support for the strengthening of
compliance infrastructure and strengthening of preemptive strategic social contribution the partner companies’
safety & health management system programs competitiveness

24
MISSION

We enrich people's lives by providing


superior products and services that
our customers love and trust

LOTTE World Tower 14-16F, 300 Olympic-ro, Songpa-gu, Seoul


Tel +82.2.829.4114
www.lottechem.com (LOTTE CHEMICAL Website)
www.lotteadms.com (LOTTE CHEMICAL’s Advanced materials Business Website)

Copyright ⓒ 2020 LOTTE CHEMICAL CORPORATION. ALL RIGHTS RESERVED

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