Lotte, Hanwha, DL to merge NCC operations in Yeosu

Petrochemical firms operating naphtha cracking centers (NCCs) in Yeosu, South Jeolla Province, submitted Friday self-rescue plans aimed at cutting production in line with the government’s effort to revive the sector struggling with a prolonged recession caused by oversupply from China and the Middle East. Under the plans, Lotte Chemical will spin off the division running its NCCs in Yeosu and merge it with Yeochun NCC, a joint venture between Hanwha Solutions and DL Chemical. The merger will create a new company. Lotte Chemical will also spin off the division overseeing its polypropylene and polyethylene production in Yeosu and merge it with the new company. Hanwha Solutions and DL Chemical will spin off their polyethylene divisions in the southern port city and join the merger as well. The companies said they will shift their focus to higher value-added products such as low-density polyethylene used for medical applications and polyolefin elastomer for hot melt adhesive in the automotive and cable industries. The Ministry of Trade, Industry and Resources said the government will provi