Lotte Fine Chemical Posts Q3 Operating Profit of KRW 22 Billion, Down 20% on Higher Raw Material Prices
Revenue rises 18.5% to KRW 525.3 billion
TMAC sales expand on higher semiconductor material demand
Accelerating expansion of clean ammonia business
Lotte Fine Chemical's revenue increased in the third quarter, but profitability declined in the wake of higher raw material prices.
Lotte Fine Chemical said on October 29 that it recorded revenue of KRW 525.3 billion and operating profit of KRW 22 billion in the third quarter. Revenue rose 18.5% year on year, while operating profit fell 20.3%.
Revenue growth was driven by higher international ammonia prices and increased sales of additional capacity from its semiconductor material TMAC expansion. Operating profit declined as raw material prices rose for major chlorine-based products, including epichlorohydrin (ECH), a raw material for epoxy resin.
The company is continuing to invest in its specialty business. In July, it announced a KRW 13 billion investment to expand TMAC capacity in response to growing semiconductor demand. According to the company, it plans to increase its world-leading TMAC production capacity by about 16% by 2028, bringing it to 64,000 metric tons annually.
The company is also increasing sales from its expanded cellulose plant for food and pharmaceutical applications, which began full-scale operations in the first half of this year.
The company is also expanding its clean ammonia business. It is increasing the volume of ammonia it re-exports using a transport vessel it acquired in 2024. On October 8, it signed the first domestic contract to supply green ammonia for power generation with Amun Energy's distributed ammonia power plant in Pohang. The company said that after commercializing green ammonia bunkering in April, it also successfully bunkered the world's largest ammonia-powered vessel on October 25.
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“Revenue increased in the third quarter, driven in part by higher sales in our semiconductor material TMAC business,” said Jeong Seungwon, CEO of Lotte Fine Chemical. “We will increase the share of our specialty business and secure future growth drivers through investments to expand TMAC capacity and the expansion of our clean ammonia business.”
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