LOTTE Fine Chemical stock faces margin pressure despite TMAC growth
Published on 11/04/2026 at 02:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSSpecialty materials drive the next phase
- Third-quarter revenue increased as ammonia prices and TMAC sales supported demand.
- Higher raw-material costs reduced operating profit despite stronger sales.
- Capacity expansion and clean-ammonia projects remain central to the companys growth plan.
LOTTE Fine Chemical reported stronger third-quarter revenue but weaker profitability on October 29, 2026. Yonhap News Agency said revenue rose 18.5 percent year over year to 525.3 billion won, while operating income fell 20.3 percent to 22 billion won. Net income declined 14.2 percent to 30.2 billion won.
TMAC demand strengthens specialty chemicals
The company benefited from higher international ammonia prices and increased sales of TMAC, a raw material used to produce TMAH for semiconductor and display manufacturing. The Herald Business reported on November 3 that sales in the chlorine-series other segment, which includes TMAC, reached 57 billion won in the third quarter, up 10.5 percent from a year earlier.
LOTTE Fine Chemical plans to invest 13 billion won to expand annual TMAC capacity from 55,000 tons to 64,000 tons. The expansion is intended to capture demand from chipmakers as artificial-intelligence infrastructure increases semiconductor consumption. The companys TMAC capacity is described as the worlds largest in the report.
Costs remain the earnings constraint
Rising raw-material prices, particularly for epichlorohydrin used in epoxy-resin products, offset part of the revenue gain. That leaves the specialty-materials strategy as a growth opportunity while input costs remain a key margin risk for investors.
Business model and competitive position
LOTTE Fine Chemical is a South Korean chemical company supplying ammonia, chlorine-based products, semiconductor materials and cellulose products for food and pharmaceutical applications. Its TMAC business serves semiconductor and display manufacturing, while its ammonia operations include clean-ammonia logistics and marine-fuel applications. In semiconductor materials, OCI has a broader portfolio including phosphoric acid and hydrogen peroxide, while LG Chem is developing materials for semiconductors, mobility and robotics. LOTTE Fine Chemical is more specialized in TMAC within this competitive field.
LOTTE Fine Chemical at a glance
- Company: LOTTE Fine Chemical Co., Ltd.
- ISIN: KR7004000006
- Ticker: 004000.KS
- Headquarters: South Korea
- Key businesses: Ammonia, chlorine-based chemicals, TMAC and cellulose products
South Korean chemical and semiconductor-material companies remain exposed to global chip demand, ammonia prices and raw-material costs; current KOSPI market reports provide the broader market context.
