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Lotte Chemical petrochem facility to feed bottom-line growth

September 06, 2019 / MARK RAO

LOTTE Chemical Titan Holding Bhd’s (LCT) 40%-owned US shale gas project will contribute to its bottomline this year and onward, but the company’s near-term outlook remains challenged on waning demand and oversupply conditions. The South Korean-controlled petrochemical producer announced yesterday in a Bursa filing that its new US$3.1 billion (RM13 billion) petrochemical facility, namely Lotte Chemical USA Corp (LC USA), commenced commercial operations last month. Located in Lake Charles, Louisiana, the facility comprises an ethane cracker facility with an annual capa-city of one million tonnes, in which LCT holds a 35.2% equity interest, as well as a 700,000 tonnes per annum mono ethylene glycol plant. LCT has a 40% stake in the latter. LC USA is joint venture between LCT and its parent company, the Korea-based Lotte Chemical Corp (LCC), which holds a 60% stake in the venture. BIMB Securities Sdn Bhd analyst Azim Faris Ab Rahim said the US shale gas project will provide som...