According to the company’s website press release on March 21, 2023, LOTTE Chemical Titan Holding Berhad (“LCT”) is pleased to announce that its subsidiary, PT LOTTE Chemical Indonesia (“LCI”), had on 21 March 2023, entered into a 12-year term loan facility of USD2.4 billion (equivalent to approximately RM10.58 billion) with The Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks (“Loan Facility”) to fund the development works of its Integrated Petrochemical Facility which is also known as the LOTTE Chemical Indonesia New Ethylene Project (“LINE Project”).
LCT holds an effective equity interest of 51% in LCI, the owner of the LINE Project, while LOTTE Chemical Corporation (“LCC”) holds the remaining 49%. LCC is the guarantor of the Loan Facility.
President & CEO of LCT, Mr Park Hyun Chul commented, ‘the construction of the LINE Project commenced in January 2022 and it is slated for completion in 2025. I am glad that the construction progress, thus far, is on schedule and we are confident that the LINE Project will be completed on time. As at 6 January 2023, LCC and LCT had completed their portion of equity injection of USD1.6 billion into LCI, representing 40% of the capital structure. The completion of the Loan Facility for the LINE Project marked an important milestone with the finalisation of the remaining capital funding for the project.’
‘The LINE Project serves as a key strategic expansion for the Group to solidify LCT’s position as a Top-Tier Petrochemical Company in Southeast Asia. The project also provides synergistic advantages to the Group’s 3 existing standalone polyethylene plants which are in the vicinity of the project by reducing feedstock transportation and logistics costs as well as higher operational and cost efficiencies,’ added Mr Park.
‘The LINE Project includes the development of a cracker plant that will use naphtha and liquefied petroleum gas as its feedstock to produce, amongst others, 1,000 Kilo Tonnes per Annum (“KTA”) of ethylene and 520 KTA of propylene. Upon completion, the production capacity of the Group will increase by 65% to 5,878 KTA from its existing production capacity of 3,568 KTA. As Indonesia is a net importer of petrochemical products, the project will enable us to capitalise on the anticipated increase in demand for our products in the country,’ stated Mr Park.
About LOTTE Chemical Titan Holding Berhad
LOTTE Chemical Titan Holding Berhad (LCT or Company) is the subsidiary of LOTTE Chemical Corporation under the LOTTE Group. Established in 1991, the company is Malaysia’s first standalone polyolefins producer and one of the largest integrated olefin and polyolefin producers in Malaysia and Southeast Asia.
LCT aims to create a better world and cater to the needs of people by enhancing their quality of life. LCT produces two principal product categories: olefins & other derivatives and polyolefins. The company is in people’s everyday life as polyolefins, which comprise polyethylene (PE) and polypropylene (PP), are the most basic building blocks in the plastic fabrication industry. PE and PP are common materials for producing products ranging from daily necessities, e.g. electrical appliances, consumer packaging, and household products, to industrial materials, e.g. automotive parts, textile, general industrial applications, healthcare, and agricultural products.
LCT’s production site in Malaysia consists of 12 plants located on two sites in Pasir Gudang and Tanjung Langsat, Johor, and owns a 40% stake in LOTTE Chemical USA Corporation in Houston, Texas. As the company envisions to be a top-tier petrochemical company in SouthEast Asia (SEA), in 2006, it expanded its regional footprint with 3 polyethylene plants in Indonesia through its subsidiary, PT LOTTE Chemical Titan Nusantara. The company has also commenced the construction of the LOTTE Chemical Indonesia New Ethylene (LINE) Project in Indonesia in first quarter of 2022, and the completion of the project is expected in the year 2025.
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