Print

South Korea’s Lotte Chemical Corporation has officially exited the polyolefin elastomer (POE) business, citing strained margins amid intensifying competition from Chinese producers.

According to industry sources, the company shuttered its POE plant in the Yeosu National Industrial Complex, Jeollanam-do, on 17 April—effectively marking its exit from the business.

Earlier in 2022, Lotte Chemical had forecasted that the global POE market would grow to $3.6 billion by 2027, reflecting an expansion by $1.64 billion within six years. However, aggressive pricing by Chinese suppliers has significantly undercut market values. One estimate revealed that average POE prices in Germany had fallen by up to 10% between November and December 2024.

The withdrawal forms part of Lotte Chemical’s broader loss-mitigation strategy. As previously reported by CommoPlast, the company had also announced plans to divest a 25% stake in its Indonesian unit, Lotte Chemical Indonesia (LCI), in March.

Written by: Derek Yong