Lotte Chemical CorporationKRX: 011170

Lotte Chemical shuts newly-commissioned Indonesia cracker due to tech issue, sources say

· Issued by Lotte Chemical Corporation

Lotte Chemical KRX:011170 has shut its newly-commissioned steam cracker at Cilegon, Indonesia due to technical issues, three sources familiar with the matter said on Wednesday.

The unit should be restarted within the next 1-2 weeks, after it was shut over the weekend, the sources said, adding that it was due to a compressor issue.

Lotte Chemical did not immediately respond to a Reuters request for comment.

The company has yet to achieve on-spec production of ethylene, a key building block for petrochemicals, since the unit started up on May 20, the sources added.

The unit can produce 1 million tons per year (tpy) of ethylene by processing naphtha and liquefied petroleum gas.