Karachi: South Korea’s Lotte Chemical announced Thursday the sale of a 75% stake in its Pakistani subsidiary to Dubai-based PTA Global Holding for 98 billion won ($68.94 million), marking a pivotal move in its portfolio overhaul. The transaction, detailed in a company filing, aligns with a government-backed initiative to rescue struggling petrochemical firms battered by weak global demand and oversupply pressures.
Lotte Chemical Pakistan, the wholly owned arm until now, operates a Karachi-based facility churning out 500,000 tons of high-purity terephthalic acid (PTA) yearly—a key feedstock for polyester fibers, industrial yarns, and PET bottles essential to textiles and packaging industries. The divestiture allows Lotte to streamline operations and refocus on core strengths amid sector-wide headwinds, including volatile raw material costs and sluggish economic recovery in major markets.
In a late Wednesday statement, the subsidiary confirmed Adnan Afridi’s appointment as its new chief executive officer, signaling a fresh chapter post-sale. Afridi, a seasoned industry veteran, vowed an “aggressive growth trajectory” via mergers and acquisitions to bolster diversification and operational scale. “We’re poised to leverage Pakistan’s strategic position in regional supply chains,” he emphasized, eyeing expansions in downstream value chains.