April 24, 2024

• 

The prices of its flagship products butadiene and ethylene glycol have surged due to short supply, said analyst Lee Eung-ju. That of butadiene rose 59 percent on average from the previous quarter, and demand for raw materials in China is rising, explained the analyst. 

Despite the recent decline in prices, Lotte Chemical will secure growth momentum by listing its Malaysian subsidiary Titan, according to Lee. The subsidiary’s operating profit in 2016 reached 505.9 billion won, accounting for 19.9 percent of the parent company’s, said the analyst emphasizing that the public listing of Titan will boost the firm.

Titan’s market value after the IPO is estimated at 6 trillion won, and the capital will help finance a new plant in Indonesia, which will begin operations in 2020, said Lee.

By Hwang You-mee (glamazon@heraldcorp.com)