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Photo=Lotte Chemical |
[Alpha Biz= Reporter Kim Jisun] Lotte Chemical is set to raise approximately ₩1.4 trillion through a capital increase in its overseas subsidiaries, aiming to improve financial stability by repaying debt and preparing for future investments in new businesses. As the petrochemical industry continues to face prolonged downturns, part of the funds will be used to strengthen the company's financial health.
The company has been recording multi-trillion-won cumulative losses over the past two years due to low-priced competition from China, with expectations that the downturn will persist.
Lotte Chemical’s wholly-owned U.S. subsidiary, Lotte Chemical Louisiana (LCLA), plans to raise ₩662.6 billion through a third-party capital increase by the end of this year, reducing Lotte Chemical’s stake to 60%. Additionally, the company plans to raise ₩700 billion by partially selling shares in its Indonesian subsidiary, PT LCI, by next year.
Lotte Chemical is also pursuing a "lightweight asset" strategy by reducing its basic chemicals business through the sale of inefficient assets and exiting certain operations. The company plans to cut capital expenditures (CAPEX) next year to ₩1.7 trillion, about half of this year’s level, and delay certain investment projects to improve cash flow.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
