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Photo=Lotte Chemical |
[Alpha Biz= Reporter Kim Sangjin] Lotte Chemical, at the center of Lotte Group's liquidity issues, has suspended operations at certain production lines at its Yeosu plant.
According to Lotte Chemical on the 3rd, the company halted part of the operations at the second factory of its Yeosu National Industrial Complex on the previous day. The second factory has five production lines, and the ones shut down are the Ethylene Glycol (EG) and Ethylene Oxide Derivatives (EOA) production lines.
The shutdown involved emptying the production facilities and filling them with nitrogen, a process known as "box-up." Box-up refers to the protective measures taken to secure equipment during a halt in operations. The company had already suspended operations at the PET production line earlier this year due to profitability concerns. The other two lines at the factory are currently still operating.
Lotte Chemical has reported losses over the past two years and has posted a deficit of 660.1 billion won (for the first to third quarters of this year). The global increase in supply and the rise in China's petrochemical self-sufficiency have led to decreased demand.
Last month, about 90% of the company's bonds issued by Lotte Chemical lost their benefits due to non-compliance with deadlines. As a result, Lotte Group had to pledge its core asset, the Lotte World Tower, to banks in order to secure credit.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
