Lotte Chemical Corp., a major South Korean chemical company, said Thursday it has decided to merge with its wholly owned subsidiary as part of efforts to streamline its chemical business.
Lotte Chemical said its merger with Lotte Advanced Materials Co. will be completed by Jan. 2, 2020.
Lotte Chemical formerly owned a 90 percent stake in Lotte Advanced Materials after it acquired the company from Samsung Group in April 2016.
It bought the remaining 10 percent stake from Samsung SDI Co. for 279.5 billion won ($231 million) on July 30.
Lotte Chemical said the move is intended to help boost the company's competitiveness by bringing specialty chemicals businesses under the same wing and maximizing efficiency in management.
The merger will also boost its annual polycarbonate production capacity to 460,000 tons. Lotte Advanced Materials currently produces 240,000 tons of polycarbonates a year.