LG Chem Submits Petrochemical Restructuring Plan to Seoul
LG Chem has submitted a plan to restructure its petrochemical business to the South Korean government. This move responds to government calls for industry-wide downsizing, aiming to cut naphtha-cracking capacity by up to 25%. Other major firms, including DL Chemical and Hanwha Solutions, also submitted plans. This follows earlier submissions from HD Hyundai and Lotte Chemical, with Lotte planning a merger carve-out with HD Hyundai Chemical.
LG Chem has formally submitted a strategic plan to restructure its petrochemical operations to the South Korean government. This initiative aligns with a broader governmental push for industry-wide downsizing and capacity optimization within the petrochemical sector. Authorities have been urging companies to reduce naphtha-cracking capacity, with targets suggesting reductions of up to 25% to enhance efficiency and address oversupply. LG Chem's submission is part of a collective industry response, as other significant players have also presented their restructuring blueprints. DL Chemical and Hanwha Solutions are among the companies that have recently submitted their plans. Preceding these submissions, HD Hyundai and Lotte Chemical had already conveyed their intentions. Notably, Lotte Chemical's strategy includes a partial business carve-out, intended to facilitate a merger with HD Hyundai Chemical. This series of restructuring efforts underscores a concerted industry-wide adaptation to government mandates aimed at streamlining the petrochemical landscape and fostering greater sustainability and competitiveness in the South Korean market.
