Can you provide an introduction to LOTTE Chemical Titan?

LOTTE Chemical Titan is a significant player in the petrochemical industry and holds the distinction of being Malaysia’s first standalone producer of polyolefins. We have grown immensely since commencing commercial operations in 1991, starting with a production capacity of 100,000 t/y. With the acquisition by LOTTE Chemical Corporation, our production capacity increased to 2,538,000 t/y. In 2017, we listed on Bursa Malaysia’s Main Market with a production capacity of 3,014,000 t/y. Currently, our total production capacity stands at 3,568,000 t/y, with plants located in Pasir Gudang & Tanjung Langsat, Johor, Malaysia, and an additional capacity of 450,000 t/y in Merak, Indonesia. The upcoming LINE Project in Indonesia will further contribute to our growth, adding 65% production capacity to the Group.

How has LOTTE’s product portfolio evolved, and what are your key markets?

Our primary focus is on the production of polyolefins, including polyethylene and polypropylene, as well as olefins such as ethylene and propylene. We also produce other derivatives like butadiene, tertiary butyl alcohol, benzene, and toluene. Our products cater to both the domestic markets in Malaysia and Indonesia, where we serve a diverse customer base comprising plastic manufacturers in sectors such as electronics, packaging, healthcare, automotive, construction, and consumer packaging. Additionally, we export our products to customers in 60 countries worldwide.

The LINE project in Indonesia is a significant investment. What are the advantages of this expansion?

The LINE Project, a joint venture valued at US$3.95 billion between LOTTE Chemical Titan (51% equity interest) and our parent company, LOTTE Chemical Corporation (49% equity interest), is located in the Banten Province of Indonesia. This integrated petrochemical facility will have a production capacity of 1 million t/y ethylene and 520,000 t/y propylene. Once completed, it will increase the Group’s production capacity by 65% to 5.878 million t/y from the existing 3.568 million t/y. The LINE Project serves as a strategic expansion for LOTTE Chemical Titan, solidifying our position as a top-tier petrochemical company in Southeast Asia. Additionally, the project offers synergistic advantages to our existing polyethylene plants located near the project site, as it reduces feedstock transportation and logistics costs. Indonesia, being a net importer of petrochemical products, presents an opportunity for us to capitalize on the anticipated increase in demand within the country. The additional supply is likely to target import substitution in the domestic market.

As a leading polyolefin producer, what demand trends have you observed in the PE and PP markets?

Demand for polyethylene (PE) and polypropylene (PP) is closely tied to economic growth, which indicates that long-term demand is expected to rise. However, the current environment poses challenges due to a combination of factors, including the Ukraine crisis, high inflation, and the lingering effects of the pandemic. These factors have impacted the demand for PE and PP, creating a challenging market environment.

LOTTE Chemical Titan has adopted the ESG tagline “Every Step for Green.” What does this signify?

As the largest overseas subsidiary of LOTTE Chemical Corporation, we wholeheartedly embrace our parent company’s new corporate vision of “Every Step for Green” in all aspects of our business operations. Our parent company, headquartered in Seoul with global operations, places significant importance on promoting environmental, social, and governance (ESG) practices and being accountable to our stakeholders. At LOTTE Chemical Titan, we recognize our responsibility as a petrochemical player to operate in a responsible manner. With regards to climate change, we are committed to reducing greenhouse gas emissions by focusing on sustainable manufacturing practices and enhancing the efficiency of our energy installations. We have engaged a reputable consultant to establish the baseline data for greenhouse gas emissions at our Malaysian plants, and we are collaborating with renowned companies to explore opportunities for chemical and mechanical recycling of post-consumer plastic waste.

Do you have a final message?

Looking ahead, the LINE Project represents a key catalyst for our near-term growth and will strengthen our market presence in the petrochemical industry. Despite the current market uncertainty, LOTTE Chemical Titan remains dedicated to exploring new avenues for sustainable growth by incorporating ESG criteria in our investment assessments. We are committed to becoming a people-centric, forward-thinking, and life-enriching organization, building a sustainable business, enhancing our competitiveness, and fostering a strong culture of safety and sustainability.