12 January 2009 07:51 [Source: ICIS news]
SINGAPORE (ICIS news)--South Korean cracker operator Honam Petrochemical has completely absorbed its 100% subsidiary Lotte Daesan to operate its businesses more efficiently under a single entity, a company source said on Monday.
"There will be no more Lotte Daesan from this year. The new name is now Honam Petrochemical,” the source said.
“We save on costs by operating just one company,” he said.
The two companies have been sharing the same CEO for the past two years and their sales departments have been merged for a year now, he said.
Lotte Daesan operates a 1m tonne/year cracker at Daesan, while Honam’s cracker at Yeocheon has a nameplate ethylene capacity of 750,000 tonnes/year.
The crackers were currently operating at close to full capacity, with no plans for any production cuts, the source said.
“We’ll have to see the market situation. According to the market, we will decide from time to time (to cut production),” he said.
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