Petrochemical market has been in a prolonged slump, LCTITAN shuts down plant to reduce losses.

Lotte Datteng Chemical announced on the Malaysian Exchange that due to the industry's long-term downturn, the company has experienced negative profits over the past two years. Therefore, in order to reduce operational burden and alleviate losses, the company will start from this Sunday (15th) and close the No. 1 naphtha cracking plant with an annual capacity of 0.43 million tons.

The company also stated: "The company will consider resuming factory operations based on the improvement of market conditions in the future."

With the shutdown of the factory, the company expects the utilization rates of factories in Malaysia and Indonesia in 2024 to fall between 55% and 60%, and will adjust the guidance according to actual circumstances.

Lotte Datteng Chemical further mentioned that it will timely disclose the latest situation of the factories in the future.

The market closed on Friday, Lotte Datteng Chemical reported 63 cents, down 1.5 cents or 2.3% throughout the day, with a volume of 4.13 million shares traded, and has declined by 53.3% since the beginning of the year.