KUALA LUMPUR (Aug 18): Lotte Chemical Corp is planning to sell Lotte Chemical Titan Holding Bhd (KL:LCTITAN) as well as a stake in its Indonesian unit, Korea Economic Daily reported.

Citing unidentified Korean government officials, the newspaper said the Malaysia-listed unit is the primary sale target. Also in the works is the partial divestment of its Indonesian project, and it is in talks with sovereign wealth fund Danantara, Korea Economic Daily said.

Lotte Chemical Corp is reviewing market conditions and searching for potential buyers, the newspaper said.

The South Korean petrochemical company owns about 75% of the loss-making Malaysian subsidiary that manufactures polyethylene and polypropylene used in the production of plastic consumer products.

The planned divestments come at a time when the global petrochemical industry is grappling with capacity glut. Lotte Chemical Corp is also restructuring its businesses to reduce its exposure to basic petrochemicals and shift towards higher-margin speciality chemicals.

The aim is to have specialty materials account for over 60% of its revenue by 2030 while the second-largest South Korean petrochemical company strengthens its chemical business portfolio.

In Malaysia, Lotte Chemical Titan has been in the red for more than four years and made a net loss of about RM297 million in the first six months of 2026. 

The stock, meanwhile, has been on a downward spiral since its debut in 2017 which wiped out more than 90% of its value. Market capitalisation stood at RM717 million, a fraction of the RM15 billion valuation during its listing.