Petrochemical companies in the Yeosu Industrial Complex, including Lotte Chemical, DL Chemical, Hanwha Solutions, and Yeocheon NCC, recently submitted their final restructuring plan focusing on the integration of naphtha cracking facilities. The plan seeks to consolidate operations by combining facilities belonging to Lotte Chemical's Yeosu plant with those of Yeocheon NCC, aiming to reduce the overall size of operations and shift towards high-value products. This is the second instance of such a plan being submitted, following a similar one at the Daesan Industrial Complex last year.

As part of the submitted plan, the operation of Yeocheon NCC's second plant is at high risk of closure. Currently, of its three plants, the third has already ceased operations, and if the second is also closed, Yeocheon NCC's annual ethylene production capacity would drop significantly to 900,000 tons. This integration is expected to reduce the overall ethylene production capacity by approximately 1,385,000 tons, contributing to the government's target of reducing a total of 3.7 million tons announced last year, with this restructuring alone potentially achieving 67% of that goal.

The restructuring plan will also entail reorganization within the downstream sector, which relies on basic petrochemicals produced at these facilities, such as ethylene. Key competing businesses, including DL Chemical's polyethylene production, Hanwha Solutions' polypropylene and synthetic resin production, and Lotte Chemical's basic materials from their Yeosu operations, will be consolidated into a newly created entity. This strategic move reflects ongoing efforts to enhance competitiveness among stakeholders in one of South Korea's major petrochemical hubs, which houses about half of the nation's total ethylene production capacity.