Lotte Chemical, HD Hyundai plan to merge naphtha crackers at Daesan amid challenges

Lotte Chemical and HD Hyundai Group are considering integrating some naphtha cracking facilities (NCC) in Daesan Petrochemical Complex in Chungnam, as per Chemweek.

Analysts say that restructuring at the level of the domestic petrochemical industry will begin in earnest to cope with the low-cost petrochemical offensive and global oversupply from China.

According to the investment bank (IB) and the business community on the 11th, Lotte Chemical and HD Hyundai Group are negotiating the integration of petrochemical facilities in Daesan, which each company owns. Currently, it is known that it has requested a large domestic accounting firm to set the corporate value of the joint venture with the petrochemical facility assets in Daesan Petrochemical Complex owned by each of the two companies. An official at the accounting firm said, "We will continue to work on asset efficiency, such as gradually closing some facilities and reducing production after the asset and corporate valuation." During the negotiations, a plan is being discussed to hand over the facilities owned by Lotte Chemical to HD Hyundai Chemical, and to integrate the facilities into a single corporation by investing additionally by HD Hyundai Group.

Currently, there are a total of four NCCs in operation at the Daesan Industrial Complex, including LG Chemical, Lotte Chemical, Hanwha Total Energy, and HD Hyundai Chemical.

The review of the restructuring is interpreted to reduce inventory losses and streamline operations amid the recent prolonged petrochemical recession, which has increased the risk of oversupply by NCC.

In particular, it is evaluated that the government-led restructuring of petrochemicals was delayed due to political risks, which eventually led to negotiations between individual companies. As various restructuring discussions are taking place inside and outside the national industrial complex, where petrochemical companies such as Daesan, Ulsan, and Yeosu are concentrated, it is expected that restructuring and consolidation between companies could accelerate in the future. A Lotte Chemical official said, "Nothing has been confirmed internally."

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BASF SE has started operations at its new hexamethylenediamine (HMD) plant in Chalampe, France, with the facility’s output to boost the company’s overall production capacity for the nylon feedstock to 260,000 metric tons per year, as per company.

The investment value of the project was not given. BASF is also in the “final stage” of expanding its polyamide 6.6 (nylon 6.6) production at Freiburg, Germany, it said on June 12. HMD is a precursor used in the production of nylon 6.6 polymers and coatings raw materials. Adiponitrile is a key raw material for the production of HMD.

The investment at Chalampe “underlines BASF’s strong commitment to chemical production in Europe and our determination to support regional growth,” said Stephan Kothrade, a member of BASF’s board of executive directors.

BASF announced in May it had signed an agreement with Domo Chemicals NV to become the sole owner of the companies’ Alsachimie nylon intermediates joint venture at Chalampe.

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Trade association Society of Chemical Manufacturers & Affiliates (SOCMA) said two specialty chemical producers, Omega Chemicals, Inc. and RBP Chemical Technology, have joined the group, as per Chemweek.

Omega is a custom manufacturer of textile, paper and personal care chemicals, while RBP provides chemicals for the printing, medical device and electronics markets.

Solvent recycler CleanPlanet Chemical has also joined SOCMA as a service provider.
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DuPont de Nemours Inc. has announced the completion of the board of directors for its independent electronics spinoff, Qnity Electronics Inc, as per Chemweek.

The company has named Mark Blinn board chairman and Yi Hyon Paik one of nine members of the future board. Qnity is expected to spin off on Nov. 1, 2025.

Previously, Blinn served as the CEO, president and director of Flowserve Corp. until he retired in 2017. He has also served as the CFO of FedEx’s Kinko’s Office and Print Services Inc. Currently, Blinn serves as a board member at Texas Instruments, Emerson Electric Co. and Globe Life Inc.

Paik has more than 20 years of experience in the semiconductor and electronics materials industry, DuPont said. Most notably, Paik served as the president and chief strategy officer of Samsung SDI as well as executive vice president and head of the electronics materials business at Samsung Cheil Industries. Paik also held various leadership roles at The Dow Chemical Company and Rohm & Haas. He currently serves on the board of directors of Orion SA.

In April, DuPont added Karin De Bondt and Anne Noonan to the nine-member board. The full board includes Shumeet Banerji, founder of Condorcet; Blinn; Terrence R. Curtin, CEO of TE Connectivity; De Bondt, senior vice president and chief strategy officer of Trane Technologies; Byron Green, former vice president of global operations for L3Harris Technologies; Kristina M. Johnson, former president of Ohio State University; Jon Kemp, president of DuPont’s electronics business and Qnity CEO-elect; Noonan, former president and CEO of Summit Materials; Paik; and Steven Sterin, senior advisor to McKinsey & Company and former CFO of Andeavor.

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Agilyx ASA (Tigard, Oregon) has partnered with Der Grune Punkt (Green Dot; Cologne, Germany) to secure waste polystyrene (PS) feedstock for advanced recycling in Europe. Agilyx, which announced the news on June 10, intends to convert the waste to circular styrene monomer using its Styrenyx process, as per Chemweek.

The two companies have signed a memorandum of understanding that anticipates an initial target of collecting up to 20,000 metric tons per year of waste PS feedstock.

“It is the intention of the collaboration to prioritize supply of the recycled styrene monomer to brand-owner customers of Green Dot’s EPR business to help them in achieving the recycled content targets of the newly implemented Packaging and Packaging Waste Regulation,” Agilyx said in its announcement.

Green Dot collects, sorts and recycles over 300,000 metric tons per year of used sales packaging products.

Toyo Styrene Company (Tokyo) started up a 10 metric ton per day Styrenyx demonstration plant at Chiba, Japan, in June 2024.

Agilyx in March 2025 said a cradle-to-gate product carbon footprint assessment by Sphera Solutions Inc. found that styrene produced via the Styrenyx process has 38% lower carbon equivalent emissions than conventionally produced styrene from fossil resources.

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