Three South Korean Petrochemical Giants Merge, Cut 1.39M Tons of Ethylene Capacity on July 22

According to South Korea's Ministry of Industry, Commerce and Energy, on July 22, Lotte Chemical, Hanwha Solution, and DL Chemical completed a merger to establish a unified entity in the Yeosu petrochemical complex. The three companies will hold equal 33.3% stakes in the new firm, with Hanwha and DL injecting 545 billion won total to address existing debt while transferring key business divisions to Yeocheon NCC.

The consolidation includes shutting down Yeocheon NCC's second and third naphtha crackers, eliminating 1.39 million tons of annual ethylene capacity. The companies plan 800 billion won in additional investment for supply chain infrastructure and high-value product development, while maintaining operations at the more efficient first cracker and Lotte's fourth plant.