Lotte Chemical to Acquire Majority Stake in Engro Polymer & Chemicals

South Korean chemicals group Lotte Chemical is further expanding its presence in Pakistan.

According to a company statement, subsidiary Lotte Chemical Pakistan Limited (LCPL) last week agreed to acquire a majority stake in Pakistani PVC producer Engro Polymer & Chemicals Limited (EPCL). LCPL will purchase a 56.19% stake in EPCL from Engro Corporation Limited for approximately PKR 19.7 billion (EUR 61.1 million).

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The transaction remains subject to approval by the relevant regulatory authorities. Following completion of the deal, Lotte plans to launch a tender offer for the remaining EPCL shares, with the aim of integrating the company into LCPL’s corporate structure.

EPCL is Pakistan’s only PVC producer. The company operates an integrated chlor-alkali complex at Bin Qasim near Karachi, with annual production capacities of 295,000 tonnes of PVC and 100,000 tonnes of caustic soda and hydrogen peroxide.

LCPL, meanwhile, is Pakistan’s only producer of purified terephthalic acid (PTA), a key feedstock for PET, and operates corresponding production facilities at the Port of Bin Qasim. With the acquisition of EPCL, Lotte Chemical’s Pakistani subsidiary aims to broaden and diversify its production portfolio.

LCPL CEO Adnan Afridi said: “This combination creates a stronger foundation for sustainable growth, operational excellence and innovation. The identified synergies, together with the complementary strengths of both companies, will enhance our competitiveness while enabling us to deliver greater value to our customers and stakeholders. We will continue to invest in our people, digital transformation, technology, sustainability, operational excellence and new expansion projects. These investments will strengthen Pakistan’s industrial base and contribute to the country’s long-term economic development.”

Lotte Chemical is part of South Korea’s Lotte Group and is headquartered in Seoul. The company operates production sites in South Korea, China, Malaysia, Indonesia, Vietnam, India, Pakistan, Uzbekistan, Turkey, Hungary, the United States and Mexico. Its product portfolio includes ethylene, polyethylene, propylene, polypropylene, butadiene, PTA, MEG, PET, polycarbonate and benzene, among other chemicals and polymers.

More information:
www.lottechem.com, www.lottechem.pk, www.engro.com, www.engropolymer.com

Lotte Chemical, Seoul, Korea

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