HD Hyundai Chemical and Lotte Daesан Petrochemical merge into integrated entity
First tangible result of domestic petrochemical industry restructuring
Refining-petrochemical integration and production optimization planned
Medium- to long-term upgrade of business structure underway
H&L Advanced, the first concrete outcome of South Korea's petrochemical industry restructuring, officially launched Friday.
The integrated entity formed by merging HD Hyundai Chemical and Lotte Daesан Petrochemical held an inauguration ceremony at the Daesан factory in Seosan, South Chungcheong Province, marking the start of full-scale operations.
About 180 executives and employees attended, including H&L Advanced co-CEOs Jo Nam-su and Cheon Yang-sik, Lotte Group Chemical Division President Lee Young-jun and HD Hyundai Oilbank CEO Song Myung-jun, who gathered to share the integrated company's vision and mark its new beginning.
H&L Advanced was established through "Daesан Project No. 1," an initiative aimed at boosting competitiveness through industry restructuring. The company name combines the initials of HD Hyundai Chemical (H) and Lotte Chemical (L) with "Advanced," signifying a commitment to sustainable growth through change and innovation.
H&L Advanced plans to organically link its refining and petrochemical capabilities to optimize the entire process from raw material procurement to product manufacturing. The company aims to maximize operational synergies from the merger by improving production efficiency and strengthening cost competitiveness.
Over the medium to long term, the company plans to expand its portfolio around specialty materials and eco-friendly products, upgrading its business structure beyond commodity petrochemicals and securing a foundation for future growth.
"H&L Advanced will leap forward as an agile organization with strong competitiveness by combining the capabilities and experience both companies have built up," HD Hyundai Oilbank CEO Song Myung-jun said. "I hope H&L Advanced will serve as a starting point for opening new possibilities for South Korea's petrochemical industry."
"Lotte and HD Hyundai chose the path of integration to secure competitiveness in the Daesан business, based on the trust and cooperation built through years of joint venture operations," Lotte Group Chemical Division President Lee Young-jun said. "I hope the combined capabilities of both companies will translate into meaningful results across production and operations."
keg@heraldcorp.com
