LCT ON TRACK TO MEET TARGET
Polyolefin producer will double capacity to 7m tonnes in order to be top-tier petrochemical firm by 2024
LOTTE Chemical Titan Holding Bhd (LCT) is on track to meet its target of becoming a top-tier petrochemical company in Southeast Asia by 2024.
“Our capacity is now at about 3.5 million tonnes per year. In order to become a toptier petrochemical company, we need to double capacity to seven million per annum,” said president and chief executive officer Dr Lee Dong Woo at a briefing following the conclusion of its annual general meeting, here, yesterday.
“Our plant in Indonesia, Lotte Indonesia New Ethylene (LINE), which will be completed by 2023, will also help push this target further. Once completed, LINE will be able to produce one million tonnes of ethylene per annum,” he said.
LCT is currently Malaysia’s first standalone producer of polyolefin, a necessary element in the plastic fabrication industry and used for the production of automotive parts, textile, general industry applications and electrical appliances.
The company has 12 plants, two co-generation plants and three tank farms in Malaysia.
LCT also operates three polyethylene plants in Indonesia through its subsidiary, PT Lotte Chemical Titan Tbk.
“We are exploring opportunities to venture into high-value chemicals and polymers to complement our existing range of products.
“However, there’s nothing concrete as of now. We are still focusing on our Malaysian and Indonesian polyolefin productions, but it is always good to diversify.”
Lee also said the outlook remained challenging for the petrochemical industry.
“Supply and demand imbalance for polymers may also emerge, which could limit our margins upside. However, we are confident that the growing consumption seen in Southeast Asia, India and China markets will be able to absorb the additional supply.”
Due to their immense consumption appetite, China and Southeast Asia represent a large untapped potential market for LCT.
At present, China and Southeast Asia account for 13 and 76 per cent of its export revenue, respectively.
For the financial year ended December 31 last year, LCT posted a net profit of RM785.3 million on the back of RM9.24 billion revenue.
The company had proposed a final single-tier dividend per share of 17 sen, which translates to a total dividend payout of RM386 million.