The Daesan petrochemical joint venture between Lotte Chemical and HD Hyundai Oilbank, named ‘H&L Advanced,’ officially launched on September 1, 2026, it is reported. The surviving entity is HD Hyundai Chemical, into which Lotte Daesan Petrochemical — the company spun off from Lotte Chemical’s former Daesan plant — will be merged, with Lotte Chemical and HD Hyundai Oilbank each holding a 50% stake, it is reported.
The merger is reportedly the first project under the petrochemical industry restructuring agreement signed by the government and industry in August 2025, restructuring operations by shutting down part of the naphtha cracking center (NCC) facility and raising the utilization rate of the remaining facilities.
Under the integration, an NCC facility with a capacity of 1.1 million tonnes per year will be shut down for three years, while the utilization rate of the remaining facilities is targeted to rise from 80% to 100%, it is reported. The joint venture launched about one year after the restructuring agreement was signed in August 2025.
South Korea’s petrochemical industry is reportedly holding similar restructuring discussions at other major industrial complexes, including Yeosu and Ulsan, in response to global oversupply and deteriorating profitability, with the Daesan joint venture regarded as the first case of this restructuring.
As facility consolidation-driven restructuring in South Korea’s petrochemical industry gains momentum, this is viewed as a trend that could affect the future adjustment of domestic ethylene and polyolefin supply capacity.
Whether the government’s projected 2028 turnaround to profitability for the Daesan industrial complex is achieved, and the progress of restructuring discussions at other complexes such as Yeosu and Ulsan, are worth watching.