Lotte Chemical struggles as losses pile up over the last 14 quarters

LOSS-MAKING Lotte Chemical Titan Holding Bhd has been anything but a titan, and analysts are concerned it could now go bust without financial support or unless a miracle happens and the chemical market makes a sudden recovery.

The threat is very real, as the company has already mothballed one of its two cracker facilities in Johor, as bearish demand-supply fundamentals of the chemicals market have forced it to do so. Losses have piled up over the past 14 consecutive quarters, totalling RM3.28bil. This number is set to grow, as its capacity rationalisation is making slow progress.