Lotte Chemical eyes 50 tln won in sales by 2030 with hydrogen, battery materials drive

All News 15:30 March 31, 2022

By Kim Seung-yeon

SEOUL, March 31 (Yonhap) -- Lotte Chemical Corp. said Thursday it aims to generate 50 trillion won (US$41.3 billion) in sales by 2030 from hydrogen energy, battery materials and plastic recycling as it seeks to make inroads into green businesses amid the industrywide transition to sustainable growth.

The ambitious goal unveiled by the petrochemical unit of South Korean conglomerate Lotte Group during an investor relations session represents a 180 percent hike from its 2021 sales of 17.8 trillion won.

Under the plan, Lotte Chemical will create two new divisions to each take charge of hydrogen energy and battery materials as it ramps up its push for market expansion in those areas.

The hydrogen department will push to secure blue and green ammonia, the key feedstock for hydrogen, from overseas, with an aim to supply 1.2 million tons of clean hydrogen to the domestic market by 2030.

It will work with other Lotte affiliates for a "hydrogen road map" that would include hydrogen power business and the service of charging stations, the company said.

Lotte Chemical will spend 4 trillion won for the battery materials business to meet the growing demand from EV makers, and aims to post 5 trillion won in sales for the sector by 2030.

The company will seek to secure technologies and build facilities to bolster the plastic recycling business, with an eye to sell more than 1 million tons by 2030.

Lotte Chemical is the largest producer of polyethylene terephthalate (PET) in South Korea and is building a 110,000-ton PET waste recycling factory in the industrial city of Ulsan, about 400 kilometers southeast of Seoul.

Lotte Chemical said it also intends to join RE 100, a global corporate initiative committing influential businesses to using 100 percent renewable electricity, by next year.

"By strengthening the ESG competitiveness of the existing businesses and advancing into new green sectors, we will build a sustainable growth system and grow into a company that repays the trust to shareholders," Kim Gyo-hyun, CEO and vice chairman of Lotte Chemical, said.

Lotte Chemical said it will offer interim dividends for the first time starting this year and purchase about 300 billion won worth of treasury stocks over the next three years in efforts to promote shareholder value.