The logo of Lotte Chemical is seen at its office building in Seoul, South Korea, October 11, 2017.
Lotte Chemical Pakistan, listed as LOTT.PSX, operates a plant in Karachi with an annual production capacity of 500,000 tons of high-purity terephthalic acid (PTA). PTA is used in polyester fibers, industrial yarns, and PET bottles, and plays an important role in various manufacturing processes. The stake sale marks a significant change for the subsidiary as it transitions under new majority ownership.
Following the sale, Lotte Chemical Pakistan announced that Adnan Afridi has been appointed as the company’s new chief executive officer, according to a statement released late on Wednesday. Afridi outlined the company’s future direction and said: “The company plans aggressive growth through mergers and acquisitions to enable diversification and scale.” His comments reflect an intention to expand operations and strengthen the company’s position in regional markets.
The divestment aligns with Lotte Chemical’s ongoing restructuring measures, which aim to improve financial performance and respond more effectively to market conditions. The company has been adjusting its portfolio as part of a wider industry effort in South Korea to address challenges faced by petrochemical producers, including subdued demand and increased availability of products in the global market.
Under its new ownership structure, Lotte Chemical Pakistan is expected to continue production at its Karachi facility while exploring opportunities for expansion in line with the strategy outlined by its newly appointed CEO. The company’s focus on growth through acquisitions is intended to broaden its business scope and enhance long-term competitiveness.
Overall, the stake sale represents a notable step in Lotte Chemical’s restructuring efforts and sets the foundation for new development initiatives at its Pakistani subsidiary.
