Lotte Ineos Chemical to expand vinyl acetate monomer plant

Lotte Ineos Chemical, South Korea's lone maker of acetic acid and vinyl acetate monomer (VAM), on Monday said it will expand its VAM output capacity with a completion target of late 2025.

Following the completed expansion of its second VAM plant in 2020, the company said it is pushing for a revamp of its third facility three years later.

To this end, it bought a site near its Ulsan plant and signed a basic design contract with Lotte E&C.

The latest expansion is expected to boost Lotte Ineos Chemical's annual output capacity of VAM from 450,000 tons to 700,000.

VAM is widely used in products consumed in daily life such as food packaging, non-toxic adhesives and paint as well as eco-friendly high-tech materials to make things like solar cell module housing and polarized film for use in displays.

Demand for VAM is rising in tandem with that for facilities used in solar power development worldwide.

"By expanding our third VAM plant, we will guarantee a more stable supply of the material and contribute to the development of Korea's new and renewable energy sector," a Lotte Ineos Chemical source said.

Write to Seo-Woo Jang at suwu@hankyung.com