China's Growing Plastics Dominance Is Squeezing Out Asian Rivals [BNN Bloomberg (Canada)]
JP Morgan Chase & Co. (JPM)
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Source: BNN Bloomberg
Asia's largest economy used to be the major market for South Korean companies like LG Chem Ltd. and Lotte Chemical Corp. But the exporters of the chemicals used to make everything from nylon to disposable bottles and car interiors are now being forced to downsize their operations after a frenzy of petchem-plant building in China over the last few years created a supply glut. LG Chem, South Korea's biggest petrochemicals maker, shut a styrene monomer unit in Yeosu last month due to prolonged oversupply, according to a spokesperson who asked not to be named due to company policy. Lotte Chemical is also looking at strategic options for its Malaysian subsidiary, it said in an exchange filing this month, after Korean media reported it was trying to sell it. The predicament these companies find themselves in is due to a massive surge of investment in the Chinese petrochemicals industry that started to really take off in 2020. The trend is continuing unabated, with the country set to ac
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