FPNI: LOTTE CHEMICAL TITAN

Company analysis

The company produced polyethylene both for domestic client and oversea client. Based on its annual report, more than 16 % of total revenue came from its related party at Malaysia. In 2014, it was only 16 % of revenue came from client at oversea. Lotte Chemical Titan purchased its raw material both from supplier at domestic and supplier at abroad. Chandra Asri Petrochemical is one of domestic suppliers that supply more than 10 % of total material.

In 2014 the company increased its revenue 6 % up compared to revenue in 2013. The customers that had more than 10 % of total net revenue were Bukit Mega Masabadi and Lotte Chemical Titan Sdn Bhd. Both of Bukit Mega Masabadi and Lotte Chemical Titan Sdn Bhd had increased its purchase in period of 2013-2014 respectively from 15.78 % in to 17.58 % and from 7.87 % in to 10.23 %.  

Lotte Chemical Titan International Sdn Bhd owns more than 95 % of total share. The remained share is owned by public. Yoon Sung Ku is fulfilled the position of president director at the company. He is a Korean citizen who has experience in petrochemical industry.

Polyethylene is used for producing agriculture film, flexible packaging, fishnets, tarpaulin, clean water pipe, jerry cans, cosmetics and food grade bottle. The end product application is related with others industries such as food and beverage and agriculture. Polyethylene is categorized as polyolefin products, polyolefin comprises polyethylene and polypropylene.

In polyolefin market, Chandra asri petrochemical revenue was more than USD 1,302,846 thousand in 2014, it was bigger than LCT which was only having revenue amounting to USD 619,804 thousand.