company news about Lotte Chemical Sold Its Pakistani Subsidiary for 68 Million Dollars at a Loss of 1.8 Trillion Won

Lotte Chemical Sold Its Pakistani Subsidiary for 68 Million Dollars at a Loss of 1.8 Trillion Won

  Lotte Chemical Corporation, a financially troubled South Korean chemical company, announced on Wednesday that it has sold its subsidiary in Pakistan as part of its business restructuring. The company sold its 75.01 percent stake in Lotte Chemical Pakistan Limited (LCPL) to a consortium comprising AsiaPak Investments Ltd. and Montage Oil DMCC in a deal valued at 97.9 billion won ($68 million).

  The sale comes against the backdrop of a recent downturn in the chemical industry, which has seen Lotte Chemical's profitability plummet. The company said it has secured 127.5 billion won, covering the period from 2022 to 2024, through the sale of non-core assets and an unpaid equity gain from LCPL.

  Lotte Chemical acquired a 75.01 percent stake in the Pakistan-based pure terephthalic acid (PTA) company for 14.7 billion won in September 2009 as part of its expansion strategy at the time. However, the company now faces a dire financial situation, with a staggering net loss of 1.8 trillion won in 2024, compared to just 39.2 billion won last year.

  Operating losses also widened significantly, from 54.7 billion won to 894.7 billion won, while sales rose slightly by 2.4 percent year-on-year to 20.4 trillion won.

  During ongoing financial difficulties, Lotte Chemical's focus on restructuring and selling off non-core assets appears critical in order to survive in this challenging market.