Lotte Chemical President & CEO Kim Gyo-hyun. (Photos: Lotte Chemical)

Lotte Chemical will plunk down on about 500 billion won on the safety and environment sectors in the next three years. Even if they do well from a financial perspective, worksites found to have major industrial disasters will be evaluated poorly from now on.

This is part of Lotte Chemical’s plan to ramp up scrutiny of the safety and environment sectors on Jan 3. The company decided to prioritize the sectors in an evaluation.

The steps may be construed as Lotte Chemical’s expression of its determination to spearhead generic innovation in the safety and environment sectors, even if the company loses some revenues in the process.

Lotte Chemical President & CEO Kim Gyo-hyun has stressed that the safety and environment sectors of a chemical company are its raison d'être.

“Performances that do not guarantee safety and the environment will not be allowed,” he said. Kim warned that he will not recognize business performances of worksites if they are involved in major industrial accidents.

The 500 billion won set aside will be used for safe work management systems, digital transformation process and reinforcing responses to safety and environment risks.

Safety and environment experts will be redoubled while an outside advisory panel on process, facility and safety will be operated.

Lotte Chemical has succeeded in the development of non-combustible urethane insulation material.

Lotte Chemical Seeks to Acquire JSR’s Synthetic Rubber Business

Lotte Chemical is seeking to take over the elastomer business from JSR. I

f the deal is completed, Lotte Chemical will secure the groundwork to enter the value-added specialty product segment by restructuring its business portfolio focusing on general-purpose petrochemical products.

According to investment bank sources, Lotte Chemical recently completed due diligence on its acquisition of the elastomer business from JSR.

To this end, Lotte Chemical has selected Nomura Securities & Investment as its manager of the acquisition.

JSR is the global No. 1 company in the segment of photoresist, which is used in the production of semiconductor chips.

The elastomer business specializes in synthetic rubber, anode material binders for secondary batteries, and latex. JSR places fifth in the global market of solution styrene butadiene rubber (SSBR), which is used for high-performance tires.

SSBR tires are used as eco-friendly tires for less abrasion and emitting less gas emissions, compared to general tires. JSR possess SSBR production facilities with a combined annual capacity of 170,000 tons in countries such as Japan, Thailand and Hungary.

The business also produces 600,000 tons of synthetic rubber annually. The business posted 1.9 trillion won in sales in 2019.

Lotte Chemical’s mainstay products, such as butadiene (BD) and styrene monomer (SM), will have synergetic effects with the elastomer business since they are used for raw materials for producing the latter.

JSR’s side hopes to set its ask price at about 1 trillion won. The elastomer business suffered losses due the effects of the COVID-19 pandemic last year, which will adversely affect the price, business sources said.

A view of Lotte Chemical’s plant in Daesan, Chungcheongnam-do.