1. LOTTE Fine Chemical’s Hesellos Acquisition: What’s Happening?
LOTTE Fine Chemical will acquire LOTTE Chemical’s Yeosu plant Hesellos manufacturing facilities for 127 billion won by December 31, 2025. This represents 4.68% of LOTTE Fine Chemical’s assets and is a strategic investment to improve efficiency and reduce processing costs by directly operating the Hesellos plant.
2. Why the Hesellos Acquisition?
LOTTE Fine Chemical focuses on chemical and green materials businesses, and Hesellos is one of the key products in the green materials business. This acquisition aims to enhance production efficiency and cost competitiveness through vertical integration of the Hesellos business. LOTTE Fine Chemical’s operating profit slightly decreased in the first half of 2025 compared to the same period last year, and this investment is expected to improve profitability.
3. Impact of the Acquisition on LOTTE Fine Chemical
- Positive Impacts: Increased operating efficiency, cost reduction, strengthened competitiveness in the green materials business, synergy with LOTTE Chemical
- Negative Impacts: Short-term liquidity burden, facility operation risks
- Neutral Impacts: Macroeconomic variables such as exchange rates, interest rates, and raw material prices
Overall, positive impacts are expected to outweigh negative ones in the long term. However, continuous monitoring of facility operation and market conditions after the acquisition is necessary.
4. Investor Action Plan
Currently, no specific market expectations for this acquisition have been released. However, experts interpret it as a positive signal in the long term and recommend a ‘buy’ opinion. Investors should closely monitor the actual cost reduction effect, Hesellos business growth rate, and additional investment plans after the acquisition.