Lotte Group Chairman Shin Dong-bin, Indonesian Industry Minister Airlangga Hartarto, Investment Coordination Board head Thomas Trikasih Lembong, and Vice Chairman Huh Soo-young join hands at a ground-breaking ceremony for the Lotte Chemical Indonesia new ethylene (LINE) project in Cilegon, Banten, Indonesia on Dec. 7.

Lotte Group has begun to translate into action its plan to invest 50 trillion won in Korean and overseas business operations and create approximately 70,000 jobs in the next five years.

Under the plan, the group will continue to invest an annual average of 10 trillion won in the chemical and distribution businesses, the group’s two business axes, to ramp up business competitiveness and secure new growth engines.

Under the ambitious initiative, Lotte Chemical is implementing a 4 trillion won petrochemical complex project in Indonesia.

Lotte Group said Lotte Chemical is to hold a ceremony to officially begin work on a site for the construction of a petrochemical complex ,which Lotte Chemical Titan purchased in Banten, Indonesia.

The event is expected to serve as a signal to write the so-called 2nd Titan legend in the group’s history that will encompass Southeast Asia, beyond Indonesia. Lotte Chemical Titan is Southeast Asia’s representative petrochemical company with production operations in Malaysia and Indonesia.

In 2010, Lotte Chemical acquired Lotte Chemical Titan for 1.5 trillion won. At that time, Lotte Chemical Titan established a solid business foundation as the company posted more than $1.6 billion in sales with a 40 percent share in the Malaysian polyolefin market and a 30 percent stake in the Indonesia polyethylene market. Ethylene, dubbed “Rice of the Petrochemical Industry” is in high demand globally.

Lotte Chemical’s acquisition of Lotte Chemical Titan has an effect of “eating the cake and having it” – not only having synergetic effects in production sand sale through the economy of scale, but also expanding overseas market presence.

Dignitaries, including Lotte Group Chmn. Shin, shovel earth at a ground-breaking ceremony for the LINE project in Indonesia. (Photos: Lotte Group)

Chairman Shin’s vision on the chemical business sector does not stop here. In fact, Chairman Shin’s vision of having Lotte Chemical Titan’s plant in Cilegon, Banten outfitted with NCC upgrades was translated into action since Lotte acquired Lotte Chemical Titan.

In 2016, Lotte succeeded in purchasing the site of Indonesia's state-run Krakatau Steel. In the same year, Lotte Chemical Titan made it onto the Malaysian bourse to secure sufficient money. If and when the 4 trillion upgrading project is implemented in earnest starting next year, Lotte’s petrochemical business is expected to flex its muscle in the Asian market.

Lotte will channel a combined 8 trillion won to implement the Indonesian project and an ethane cracking center using shale gas in Louisiana, the United States. If and when the U.S. plant is completed, it will have a capacity of producing 1 million tons of ethylene. On top of the project, productions centers in Yeosu, Korea, Indonesia, and Uzbekistan would have a production capacity of 4.5 million tons.

Lotte Group is also eying its focus on Vietnam to brace for “Post China” markets. Chairman Shin will tour operations in Vietnam before he will attend the Indonesian petrochemical project ceremony.

He will meet the party secretary of Ho Chi Minh City and make inspection tours to development sites in the Vietnamese city and Lotte Mall in Hanoi.

Lotte Group’s distribution subsidiaries are involved in multipurpose city construction projects in Vietnam, including the “Thu Thiem New City” project. The project calls for building an eco-friendly city east of Ho Chi Minh City by 2021. It will cost an estimated about 2 trillion won.