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Plastic resin pellets manufactured and supplied by Lotte Chemical. / Courtesy of Lotte Chemical

Lotte Chemical announced on July 10 that it will implement a win-win support initiative to temporarily lower the supply prices of its major products for its SME clients.

The measure is aimed at easing the cost burden on SME clients hit by recent global supply chain instabilities and helping maintain a stable supply chain in the domestic market. Financed by the "2026 naphtha supply stabilization subsidy" managed by the Ministry of Trade, Industry and Energy, the plan is designed to alleviate burdens stems from price fluctuations of petrochemical raw materials and ensure the effects of government support ripple across the entire industry.

Lotte Chemical stated that it plans to sequentially announce the target products, applicable periods, and support plans by comprehensively considering the input ratio of raw materials for each product, market conditions, and transaction terms for each client. Through this price reduction, the company intends to further solidify its partnership with SME clients and support the stable production and supply chain maintenance of essential petrochemical materials used across various fields.

Previously, Lotte Chemical made diverse efforts to stabilize the domestic supply chain amid growing external variables, such as diverting export volumes to the domestic market and flexibly managing production and maintenance schedules.

In April, to ensure a stable supply of "medical PP (polypropylene)" used as a raw material for IV bags, the company postponed the scheduled maintenance of its Yeosu plant—which holds separate medical certifications—by one week to secure emergency volumes. To prevent production disruptions even during the maintenance period, it maintained an uninterrupted supply system by urgently transferring 3,900 tons of propylene produced at its Daesan plant to Yeosu.

In addition, during a period of heightened uncertainty over the supply and demand of construction materials, the company expanded the production of ethylene oxide derivatives (EOA), a core raw material for concrete admixtures. By supplying 7,000 tons—equivalent to 140% of the average monthly domestic demand—it contributed to preventing a "ready-mixed concrete crisis" at construction sites.

Lotte Chemical stated, "We will continue to place the highest value on win-win cooperation with our clients and take the lead in enhancing domestic industrial competitiveness."

Meanwhile, Lotte Daesan Petrochem Corporation, a split-off entity of Lotte Chemical, also notified its clients of supply price adjustments for its major products to stabilize the supply chain and strengthen partnerships with its clients.

                                                                                                           Kim Young-jin