Lotte Chemical's Net Loss Widens to KRW 2.49 Trillion in 2025 Amid Industry Slump
Lotte Chemical Corp. announced a widened net loss of 2.49 trillion won (US$1.7 billion) in 2025, up from 1.82 trillion won in 2024. This was largely due to a prolonged slump in the petrochemical industry, increased costs from its new Indonesian naphtha cracking center, and weak seasonal demand. The company is restructuring by selling non-core assets and plans to expand into higher-value products and battery materials, including a cathode foil plant in Kentucky, in 2026.
Lotte Chemical Corp., the petrochemical arm of South Korea's Lotte Group, reported on February 4 that its net loss significantly widened to 2.49 trillion won (US$1.7 billion) in 2025. This marks a substantial increase from the 1.82 trillion won net loss recorded in 2024. The company attributed this deteriorating financial performance to a prolonged downturn impacting the petrochemical industry, alongside specific operational challenges. Contributing factors included increased costs stemming from the October 2025 operational launch of its naphtha cracking center (NCC) facility in Indonesia, which negatively impacted its bottom line. Additionally, Lotte Chemical faced seasonally weak demand for its petrochemical products, further pressuring its quarterly results.Financially, the company also saw its operating loss widen to 943.6 billion won from 914.5 billion won, while sales fell 7.1 percent to 18.48 trillion won compared to 19.89 trillion won in the previous period. In response to these adverse conditions, Lotte Chemical has been actively restructuring its loss-making petrochemical division since early 2025. This initiative aims to enhance facility utilization and bolster its financial position through the strategic sale of non-core assets. Looking forward to 2026, the company plans to diversify its portfolio by expanding into higher-value petrochemical products, such as engineering plastics. It also intends to enter the battery materials business via its affiliate, Lotte Energy Materials Corp., and is slated to complete the construction of a cathode foil plant in Kentucky this year, marking a significant first for a South Korean firm in the U.S. battery materials manufacturing sector.
