Lotte Chemical seeks buyers for struggling Malaysian subsidiary

Lotte Chemical, one of South Korea's major petrochemical manufacturers, has renewed efforts to divest its Malaysian operations amid persistent financial challenges at the subsidiary. The Korean parent company is currently engaged in a strategic review of its holdings in Lotte Chemical Titan Holding Bhd, which has struggled to return to profitability in recent years.

The decision to accelerate the sale process reflects broader efforts by the Seoul-based conglomerate to streamline its portfolio and focus capital on higher-performing assets. Industry sources indicate that Lotte Chemical is casting a wide net in search of potential buyers, including regional petrochemical firms and investment funds with exposure to Malaysia's chemical sector.

Lotte Chemical Titan Holding Bhd has been listed on Bursa Malaysia since its initial public offering and operates chemical manufacturing and distribution operations in the country. The unit's performance has been weighed down by competitive pressures in the regional petrochemical market and fluctuating commodity prices, leading to mounting losses in recent reporting periods.

The divestment initiative represents a significant shift in Lotte Chemical's Malaysian strategy, which has spanned more than two decades. The outcome of the sale process could reshape the competitive landscape in Malaysia's specialty chemicals sector, depending on the identity and strategic intentions of potential acquirers.