Hanwha Solutions (KRX:009830) received government approval on July 20 for a joint business restructuring plan under Korea's Special Act on Corporate Vitality Enhancement, filed jointly with Lotte Chemical (KRX:011170), DL Chemical, and Yeocheon NCC.
The plan rationalizes naphtha cracker facilities by contributing the company's Yeosu PE and petroleum resin businesses in kind to Yeocheon NCC, leading to an integrated entity co-operated by three companies.
Before the integrated entity is established, existing shareholders, namely Hanwha Solutions and DL Holdings (KRX:000210) unit DL Chemical, will each inject 272.5 billion won to repay Yeocheon NCC's 545 billion won in debt.
The restructuring is expected to accelerate the shift to high-value-added products, improve operational efficiency at the Yeosu complex, and enhance the company's profitability.