SEOUL, November 13 (AJP) - South Korea's Lotte Chemical said on Thursday that it had completed the sale of its controlling stake in its Pakistani subsidiary, Lotte Chemical Pakistan Limited.
Lotte’s withdrawal from Pakistan underscores a broader trend among South Korean chemical companies seeking to pare back exposure in emerging markets with volatile currencies, while investing more heavily in specialty and sustainable chemical products that promise higher margins.
Lotte Chemical sold its 75.01 percent stake in the subsidiary to PTA Global Holding Ltd, a joint entity formed by AsiaPak Investments Limited of Pakistan and the UAE-based Montage Commodities FZCO. The transaction, valued at 98 billion won, or about $72 million, closed on Nov. 12 following a public tender offer in September.
Including 29.6 billion won in dividends received earlier this year, Lotte said it had secured a total of 127.6 billion won from the sale.
Lotte Chemical Pakistan operates a plant that produces 500,000 tons of purified terephthalic acid (PTA) annually, a key raw material used in polyester fibers, industrial yarns, and PET bottles.
The divestment marks another step in Lotte Chemical’s ongoing restructuring, as the company moves to concentrate on higher-value businesses. Since 2023, the Pakistani subsidiary had been classified as a non-core asset, with the company citing management risks linked to financial support and currency volatility in the local market.
“We will continue our business restructuring to strengthen core competitiveness and expand our specialty portfolio, particularly in high-performance engineering plastics and advanced materials,” Lotte Chemical said in a press release.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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