South Korea’s Lotte Chemical has sold a majority stake in its Pakistani subsidiary, marking a major shift in the company’s regional business strategy. The firm announced on Thursday that it has transferred about 75 percent of its shares in Lotte Chemical Pakistan to Dubai-based PTA Global Holding for $68.94 million, as part of an ongoing effort to restructure its global operations.
The divestment comes as Lotte Chemical adjusts its business portfolio under a government-supported plan designed to help struggling petrochemical producers facing weak global demand and an oversupply in key markets. By shedding non-core assets, the company aims to strengthen its position in higher-growth segments while improving financial stability.
Lotte Chemical Pakistan is a major player in the country’s industrial landscape. Its Karachi plant produces approximately 500,000 tons of high-purity terephthalic acid (PTA) each year. PTA is an essential raw material used in polyester fibers, industrial yarns, and PET bottles, making the company a critical supplier for Pakistan’s textile and packaging sectors.
Following the share transfer, Adnan Afridi has been appointed as the new Chief Executive Officer of Lotte Chemical Pakistan. In a statement issued late Wednesday, the company described the acquisition by PTA Global Holding as the start of a “new chapter,” emphasizing innovation, operational excellence, and a renewed focus on strategic expansion.
Afridi said the company’s immediate priority is to strengthen core operations and ensure long-term financial sustainability. He noted that improving plant performance and reducing operational costs will be central to Lotte Chemical Pakistan’s new direction.
“We are optimizing plant efficiency, improving reliability, and integrating advanced energy-saving technologies that will significantly reduce our production costs,” Afridi said. “This is not just about growth, it’s about setting a new standard of performance for the chemical sector in Pakistan.”
The new leadership believes the company’s modernization efforts will enhance competitiveness and allow Lotte Chemical Pakistan to serve as a key growth partner to industries that rely heavily on PTA, particularly the polyester and PET packaging segments.
Afridi also highlighted the company’s ambition to expand through mergers and acquisitions, saying diversification and scale will play an important role in reinforcing its presence in Pakistan’s manufacturing ecosystem.
Industry analysts note that the sale reflects broader changes in the global petrochemical sector, where companies are consolidating operations and focusing on efficiency to weather volatile market conditions. For Pakistan, the shift in ownership could bring fresh investment and modernization, potentially strengthening one of the country’s crucial industrial supply chains.
