Lotte Chemical, HD Hyundai to Combine Some Naphtha-Cracking Units to Address Oversupply

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Lotte Chemical (KRX:011170) and HD Hyundai Chemical will merge parts of their naphtha-cracking facilities to address a structural oversupply issue in the domestic petrochemical industry, according to filings with the South Korean bourse on Wednesday.

Lotte Chemical will split its Daesan unit in South Korea and integrate it into the HD Hyundai (KRX:267250) subsidiary to create an integrated production framework for petrochemical products.

The companies have submitted a plan to the South Korean Government to implement the restructuring proposal.

Shares of Lotte Chemical rose more than 1% at market close, while those of HD Hyundai added nearly 1%.

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