Ahsan Baig
Lotte Chemical to invest $2.6 bln in two joint ventures
SEOUL, June 18 – Lotte Chemical Corp 011170.KS said on Thursday it plans to invest an estimated 2.9 trillion won ($2.61 billion) to set up a plant in the United States with Axiall Corp AXLL.N and produce a fabric material with Japan’s Mitsubishi Corp 8058.T.
Lotte said its U.S. unit and Axiall will together set up a ethane cracker plant in Louisiana that will produce a million tonnes of ethylene a year. The Lotte unit will hold a 90 percent and Axiall will hold 10 percent of the plant.
The Lotte unit and Mitsubishi will then use the ethylene produced in Louisiana to make 700,000 tons of ethylene glycol, used in making polyester fibres, a year. Lotte will hold a 70 percent stake in the business, with Mitsubishi holding the rest.
Lotte Chemical said in a regulatory filing it hoped the businesses would generate some $1.5 billion in revenue from
2019.
Syed Zaki Hussain
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