HD Hyundai and Lotte Launch H&L Advanced in First Major South Korean Petrochemical Restructuring Deal

H&L Advanced has begun operations in South Korea’s first integrated company created under the government’s petrochemical restructuring drive.

The company held its launch ceremony on Sept. 4 at the Daesan petrochemical complex in Seosan, South Chungcheong province. It was formed after HD Hyundai Chemical absorbed Lotte Daesan Petrochemical and changed its name. HD Hyundai Oilbank and Lotte Chemical each hold a 50% stake in the new company.

The launch follows the government’s petrochemical restructuring roadmap, issued in August last year. In February, authorities approved the “Daesan No. 1 Project,” submitted by HD Hyundai Oilbank, HD Hyundai Chemical and Lotte Chemical. Lotte Chemical then separated its Daesan operations into Lotte Daesan Petrochemical before the company was absorbed by HD Hyundai Chemical. The integrated company began operating on Sept. 1.

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H&L Advanced will combine the capabilities and experience accumulated by both companies to become an agile organization with strong competitiveness.

H&L Advanced plans to link refining and petrochemical operations, optimizing the process from raw-material procurement through product manufacturing. The partners aim to improve production efficiency and cost competitiveness while adjusting duplicate and low-profit facilities. Over the longer term, they plan to expand into specialty materials and environmentally friendly products, shifting away from a business model centered on commodity petrochemicals.

HD Hyundai Oilbank chief Song Myung-joon said H&L Advanced would combine the companies’ accumulated capabilities and experience to build a more agile and competitive organization. Lotte chemical group chief Lee Young-joon said the two companies chose integration to strengthen the Daesan business, building on the trust and cooperation developed through their joint operations.

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The two companies chose the path of integration to secure the competitiveness of the Daesan business, based on the trust and cooperation built through their joint operations.