Lotte, HD Hyundai initiate NCC capacity cut

Lotte Chemical and HD Hyundai Oilbank have become the first naphtha cracking center (NCC) operators to submit self-rescue plans that include production cuts. The submission comes after the government asked domestic petrochemical firms in August to propose restructuring measures by the end of the year in exchange for regulatory relief, financial support and tax incentives. Lotte Chemcial said Wednesday that the two companies, along with their joint venture HD Hyundai Chemical, have applied for government approval of their business reform plan. Under the plan, Lotte Chemical will transfer its Daesan plant in Seosan, South Chungcheong Province, to HD Hyundai Chemical as part of efforts to cope with oversupply from China and the Middle East and shift to higher value-added products. Industry officials expect the agreement to reduce annual NCC output from the Seosan site by up to 1.1 million tons, improving profitability. The government has recommended that domestic petrochemical firms cut their combined nationwide NCC output by up to 25 percent, or 3.7 million tons. On the day of the announceWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times