Lotte Chemical sells 75% stake in Pakistani subsidiary for $69 million

The logo of Lotte Chemical is seen at its office building in Seoul, South Korea, on October 11, 2017. (REUTERS/File)
The logo of Lotte Chemical is seen at its office building in Seoul, South Korea, on October 11, 2017. (REUTERS/File)
Short Url
Updated 10 min 58 sec ago

Lotte Chemical sells 75% stake in Pakistani subsidiary for $69 million

Lotte Chemical sells 75% stake in Pakistani subsidiary for $69 million
  • Company is restructuring portfolio as South Korea seeks to support loss-making petrochemical firms
  • Lotte Chemical’s Karachi plant produces 500,000 tons of high-purity terephthalic acid annually

NEW DELHI: South Korea’s Lotte Chemical said on Thursday it has sold about 75% stake in its Pakistani subsidiary to Dubai-based PTA Global Holding for 98 billion won ($68.94 million).

The South Korean company is trying to restructure its portfolio under a government-led program aimed at aiding loss-making petrochemicals in the country due to poor demand and abundant supply.

Lotte Chemical Pakistan produces 500,000 tons of high-purity terephthalic acid (PTA), used in polyester fibers, industrial yarns, and PET bottles, annually at its plant in Karachi.

Adnan Afridi has been appointed the firm’s chief executive officer following the stake sale, Lotte Chemical Pakistan said in a statement late on Wednesday.

Afridi said the company plans aggressive growth “through mergers and acquisitions to enable diversification and scale.”


Pakistan says Afghan push for new trade routes will help ease smuggling, security woes

Pakistan says Afghan push for new trade routes will help ease smuggling, security woes
Updated 32 sec ago

Pakistan says Afghan push for new trade routes will help ease smuggling, security woes

Pakistan says Afghan push for new trade routes will help ease smuggling, security woes
  • A senior Afghan official told traders his country to end reliance on Pakistan within three months
  • Pakistan says Afghan transit goods are smuggled back into its markets, hurting revenue and security

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif said on Wednesday Afghanistan’s decision to seek new trade routes amid rising tensions with Islamabad would ultimately benefit Pakistan, reducing transit-trade complications and helping curb militant violence that Pakistan says is carried out by armed groups based in Afghanistan.

His comments came hours after Afghan deputy prime minister for economic affairs, Mullah Abdul Ghani Baradar, told traders and industrialists to end their reliance on Pakistan for imports and exports and find alternative routes within three months.

Baradar warned the Taliban administration would not take responsibility for problems arising from commerce routed through Pakistan’s southern ports.

The Afghan official’s remarks came amid a breakdown of trust between the two neighbors, whose relations have deteriorated sharply as Islamabad accuses Kabul of harboring the Tehreek-e-Taliban Pakistan (TTP), which frequently claims attacks on Pakistani security forces. The border between the two countries has remained closed since last month following deadly clashes and Pakistani airstrikes inside Afghan territory.

“This is their own internal matter,” Asif told Geo TV. “Wherever they find cheaper freight or transit options, they will go there. I believe this should actually bring relief for us, because most of the goods sent from Karachi Port to Afghanistan end up in the Pakistani market. Luxury items are brought in that have no real consumption there, and they end up disturbing our market, where our consumers use them instead.”

Pakistan has long complained that a large volume of duty-free Afghan transit imports is smuggled back into its territory, undercutting domestic manufacturers, reducing tax revenue and feeding an extensive illicit economy.

Officials say cross-border smuggling networks often overlap with militant and criminal groups, contributing to security challenges in its western provinces bordering Afghanistan.

“When their traffic decreases here, terrorism that penetrates under the guise of trade, or in any other form, will also decline,” Asif said. “Border management will become easier for us. I see this as a kind of blessing in disguise. They are looking for other routes. Pakistan will only benefit from this. There will be no loss.”

Pakistan has served for decades as Afghanistan’s principal transit corridor for commercial goods, fuel and humanitarian supplies.

But bilateral trade, historically volatile and highly sensitive to political tensions, has been hit hard by escalating border clashes, militant attacks and tightening visa restrictions.

Baradar accused Pakistan of repeatedly blocking trade routes and politically exploiting commercial and humanitarian matters, harming traders and industrialists of both countries.