Wed, 23 Feb 2011

From: Reuters

SEOUL Feb 23 (Reuters) - South Korea's Lotte Group is considering investing as much as $5 billion to build a petrochemical plant in Indonesia, a Lotte Group official said on Wednesday, confirming an earlier Reuters report.

"The group is mulling investing $3 billion to $5 billion to construct a petrochemical plant on Indonesia's Java island," said Park Sang-sub, the group spokesman, without providing further details.

Lotte Group Chairman Shin Dong-bin is currently in Indonesia and has met with Indonesian President Susilo Bambang Yudhoyono, Park said.

Lotte currently owns two petrochemical production facilities in Indonesia through Titan Chemicals TTNP.KL, a Malaysian chemical maker that Lotte acquired last year via unit Honam Petrochemical (011170.KS).

The group also operates discount retail chain Lotte Mart in Indonesia after purchasing Dutch wholesaler Makro in October, 2008.

Lotte has in recent years made aggressive overseas acquisitions as it eyes expansion in fast-growing emerging markets like Indonesia, Vietnam and China.