Lotte Chemical eyes expansion with Uzbek petrochem complex

19 Oct '15

2 min read

The petrochemicals manufacturing subsidiary of South Korea based Lotte Group, Lotte Chemical, is eyeing expansion of its global business once commercial production beings at its newly built gas field and chemical complex in Uzbekistan early next year, according to Korean media reports.

The construction of the Ustyurt Gas Chemical Complex, built with an investment of around 4.3 trillion won (approximately $390 million), is now completed, Huh Soo-young, Lotte Chemical CEO told reporters.

“Based on our success in Uzbekistan, we will continue to expand our ongoing businesses at home and abroad to rise up as a global petrochemicals company,” said Soo-young.

The complex in Uzbekistan's Surgil field has been set up by Uz-Kor Gas Chemical LLC, a 50:50 joint venture established between Uzbekistan and a South Korean consortium led by Lotte Chemical (24.5 per cent), Korea Gas Corporation (22.5 per cent) and GS E&R (3 per cent).

Built using Lotte Chem's original technology, the new complex is now among the biggest petrochemical facilities in Asia and Europe, according to the company.

Besides processing about 3.58 million tons of liquefied natural gas, the complex will produce around 260,000 tons of methane, and process some 470,000 tons of ethane-based feedstock polymers including polypropylene and high-density polyethylene.

Soo-young said with the construction of the new complex, Lotte Chemical is now eyeing Turkey and Eastern Europe as its main export markets, and will gradually widen its presence in western China.

In the first half of 2015, Lotte Chemical's operating profit skyrocketed 435.6 per cent year-on-year to 817.8 billion won ($727 million). (RKS)

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