Vice chairman Kim Kyo-hyun of Lotte Chem.

Lotte Chemical logged 16.545 trillion won in sales, 1.968 trillion won in operating profit and 1.678 trillion won in net profit in 2018. The company announced the provisional figures based on a consolidated financial statement. The 2018 sales represent a 4 percent rise over the previous year, but the company saw the figures in operating profit and net profit plunge 33 percent and 27 percent, respectively.

The figure in 2018 was the company’s best-ever, surpassing the previous record in 2013. Despite unfavorable internal and outside conditions, LG Chemical maintained a stable operating margin of more than 10 percent.

Lotte Chemical posted lower business performances than the previous year due to a reduced spread, caused by a declining demand for all products and a rise in one-time costs, caused by regular repairs at Yeosu and Ulsan plants.

Lotte Advanced Materials and Lotte Chemical Titan, major subsidiaries of Lotte Chemical, saw profitability decline due to the worsening of Chinese market conditions, caused by U.S.-China trade conflicts, and a continued wait-and-see attitude arising from crude oil fluctuations and overall decline demand fears.

Lotte Chemical is expected to see its operating profit rise due to an impact of rising production, influenced by the full-fledged operation of an ethane cracker center in the United States, and the expansion of Malaysia Titan plant. The company plans to maintain a steady, solid business situation through Lotte Advanced Materials’ exploring value-added product markets.

Lotte Chemical paid out 10.500 won in a cash dividend per common share. Lotte Group plans to ramp up shareholders’ rights by proactively implementing shareholder-friendly policies.

Lotte Advanced Materials Acquires Belenco to Tap Turkish Engineered Stone Market

Lotte Advanced Materials, a major subsidiary of Lotte Chemical, has acquired a 725 percent stake in the Turkish engineered stone No. 1 maker Belenco.

Belenco is located at the OIZ Industrial Complex, the third largest industrial estate in Turkey, in Manisa, a 30-minute car drive from the port of Izmir, one of Turkey’s three largest cities.

With excellent production and logistics efficiency, Belenco has two production lines with an annual capacity of producing 230,000 sheets of engineered stone.

Lotte Advanced Materials’ latest acquisition allows the company to establish a foothold in the premium interior material markets of advanced countries, including the United States, which are on a sharp rise.

Lotte Advanced Materials’ plant in Yeosu is capable of producing 90,000 sheets of engineered stone annually. The company aims to rise to a global top five company through additional investment in Belenco. Furthermore, Lotte Advanced Materials has synergetic effects by supplying premium interior materials products to Lotte Group subsidiaries such as hotel and construction units.

Lotte Group has already unveiled plans to expand the conventional business portfolios focusing on commonly used products to value-added specialty businesses and continue investments to establish growth momentum of the group’s chemical business unit. Lotte Advanced Materials’ latest acquisition is part of the group’s efforts to translate the growth strategies into action.

The group’s chemical business unit plans to implement more aggressive investment plans in the Korean and foreign special chemical segments.

A view of Belenco’s plant in Turkey, acquired by Lotte Chemical. (Photos: Lotte Chemical)