Lotte Chemical office building. (Photo=Lotte Chemical)

 

[Alpha Biz= Reporter Kim Sangjin] According to Lotte Chemical's quarterly report on the 20th, it was revealed that since March of this year, a total of 7 executives have retired. During the same period, there were no newly appointed executives, resulting in a reduction in the total number of executives from 109 to 102, including both internal and external directors. Lotte Chemical's executive count has been increasing annually since 2010, when it stood at 45. If there are no significant new appointments this year, it is anticipated that the executive size will decrease for the first time this year.

The majority of the retiring executives this time were concentrated in the basic materials business. Among the 7 retiring executives, 4 were in charge of roles related to the basic materials business, such as the Technical Division Head of the Daesan Plant, the Ulsan Plant Manager of the Basic Materials Division, the Head of the Public Service 2 Division at the Yeosu Plant, and the Safety and Environment Division Head at the Yeosu Plant. Additionally, two executives from Lotte Chemical USA, responsible for the Management Division and SCM (Supply Chain Management) Division, were also included in the retirement list. Out of the total 7 retiring executives, 6 were related to the basic materials business.

Lotte Chemical produces various materials such as synthetic resins, synthetic raw materials, and synthetic rubber, with ethylene being the primary raw material used to manufacture these products, along with propylene, polyethylene, and polypropylene. Particularly, ethylene, often called the "rice of the industry," boasts the largest production scale domestically.

In the first quarter of this year, the operation rates of Lotte Chemical's basic chemical products, including PET (plastic raw material) factory, dropped significantly to 54.7% compared to 69.7% last year. The operation rate of the naphtha (NC) production factory, used to produce petrochemical raw materials, also decreased from 87.8% to 84.1%. Lotte Chemical USA's ethylene plant operation rate also declined from 85.7% to 68.3%, and monoethylene glycol (MEG) dropped from 102.1% to 97.4%.

To overcome the crisis, Lotte Chemical has appointed Lee Hoon-ki as the new CEO this year and is focusing on restructuring efforts.

 

 

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