PETALING JAYA: Lotte Chemical Titan Holding Bhd
(LCTH) has entered into a US$25.3mil (RM103.7mil) related party transaction involving the sale of naphtha to its Indonesian subsidiary to ensure feedstock continuity amid geopolitical disruptions.
In a filing with Bursa Malaysia, the group said its wholly-owned unit, Lotte Chemical Titan (M) Sdn Bhd (LCTM), signed a contract with PT Lotte Chemical Indonesia (LCI) for the sale of naphtha. LCI is 51%-owned by LCTH.
“Following the outbreak of the war involving US-Israel and Iran on Feb 28, 2026 and the closure of the Strait of Hormuz, LCTM has entered into the transaction with LCI to mitigate operational risk and ensure feedstock continuity,” LCTH said.
The company added that the contract value was based on prevailing market prices.
