Lotte Chemical Divests Majority Stake in Pakistani Subsidiary
South Korean petrochemical giant Lotte Chemical has completed the sale of a 75% stake in its Pakistani arm, Lotte Chemical Pakistan, to Dubai-based PTA Global Holding for $68.94 million (98 billion won). the transaction,announced Thursday,is part of Lotte Chemical’s broader strategy to restructure its portfolio in response to challenging market conditions within South Korea’s petrochemical sector. A government-led program is supporting this restructuring effort, addressing issues of low demand and oversupply.
Lotte Chemical Pakistan operates a facility in Karachi,producing 500,000 tons annually of high-purity terephthalic acid (PTA). PTA is a crucial component in the manufacturing of polyester fibers, industrial yarns, and polyethylene terephthalate (PET) bottles.
Following the stake sale,Adnan Afridi has been appointed as the new Chief Executive Officer of Lotte Chemical Pakistan,the company confirmed in a statement released Wednesday.
The company expressed optimism about the acquisition, stating it signals “the beginning of an exciting new chapter…defined by innovation, operational excellence, and strategic growth,” and positions Lotte Chemical Pakistan as a vital contributor to the growth of Pakistan’s PET and polyester staple fiber (PSF) industries.
Afridi emphasized a focus on improving operational performance and achieving sustainable profitability. Plans include optimizing plant efficiency, enhancing reliability, and implementing energy-saving technologies to reduce production costs. He stated the company aims to establish a new benchmark for performance within Pakistan’s chemical sector.
Furthermore, Afridi indicated the company intends to pursue an aggressive growth strategy, including potential mergers and acquisitions to broaden its product offerings and increase its scale of operations, ultimately strengthening its position as a key partner for Pakistan’s polyester and packaging industries.
