H&L Advanced launches following HD Hyundai and Lotte petrochemical merger

H&L Advanced, a newly formed integrated entity resulting from the merger of HD Hyundai Chemical and Lotte Daesan Petrochemical, has officially launched at the Daesan plant in Seosan, South Chungcheong Province. This merger represents the first major outcome of the ‘Daesan Project 1’, a government-approved restructuring initiative aimed at enhancing the competitiveness of South Korea’s petrochemical industry.

The new company is owned equally by HD Hyundai Oilbank and Lotte Chemical, each holding a 50% stake. To support this transition, the two major shareholders plan to invest an additional 1.2 trillion won, while the government has prepared a support package totaling 2.1 trillion won in financial and tax incentives.

Operationally, H&L Advanced will focus on optimizing the entire process from raw material supply to product manufacturing by linking refining and petrochemical sectors. As part of the restructuring plan, the company will halt the operation of Lotte Chemical’s 1.1 million-ton naphtha cracking facility (NCC) over the next three years and reduce production of low-profit commodity products. The long-term strategy involves shifting the business portfolio toward specialty materials and eco-friendly products to secure future growth.