By Staff Reporter
KARACHI: Lotte Chemical Corp. has sold a roughly 75 percent stake in its Pakistani purified terephthalic acid (PTA) subsidiary to Dubai-based PTA Global Holding Ltd. for $68.94 million, the latest step in Seoul’s government-backed push to restructure loss-making petrochemical assets amid chronic oversupply and weak demand.
The transaction hands control of Pakistan’s only PTA producer — a 500,000-ton-a-year plant in Port Qasim, Karachi that supplies polyester fiber, industrial yarn and PET bottle makers — to the Middle Eastern buyer. Lotte Chemical Pakistan Ltd. announced late Wednesday that Adnan Afridi, previously managing director of Engro Polymer & Chemicals Ltd., has been appointed chief executive officer. “The acquisition marks the beginning of an exciting new chapter in the company’s journey — one defined by innovation, operational excellence, and strategic growth, positioning Lotte Chemical Pakistan as a key industrial growth agent for PET and PSF customers in Pakistan,” the company said in a statement.
Afridi said the immediate priority is “operational excellence and sustainable profitability.” “We are optimising plant efficiency, improving reliability, and integrating advanced energy-saving technologies that will significantly reduce our production costs,” he said. “This is not just about growth — it’s about setting a new standard of performance for the chemical sector in Pakistan.”
He added that energy initiatives and efficiency gains will make the company more competitive and a “key growth partner” for Pakistan’s polyester and packaging industries, with further expansion to come “through mergers and acquisitions to enable diversification and scale”.
The divestment aligns with a broader South Korean government-led restructuring program for the petrochemical sector, which has been hit by excess Chinese capacity and sluggish global demand for textiles and packaging.
Separately, Gillette Pakistan Ltd. formally applied to the Pakistan Stock Exchange for voluntary delisting after its ultimate parent, Procter & Gamble Co., decided to wind down local manufacturing and commercial operations and switch to a third-party distributor model. SABV (Private) Ltd., a P&G subsidiary that holds 91.72 percent of Gillette Pakistan, intends to buy back the remaining 2,638,059 shares — representing 8.28 percent of the company — at a minimum price of Rs216.49 a piece, in line with PSX delisting regulations. Arif Habib Ltd. has been appointed purchase agent.
“The proposed delisting is a consequence of P&G’s global efforts to accelerate growth and value creation; the company has decided to shift its business and operating model in Pakistan and transition to a third-party distributor model to continue to serve consumers,” the company said in Thursday’s exchange filing. “This means we will wind down the manufacturing and commercial activities of Gillette Pakistan Ltd. and serve consumers from our other operations in the region. Accordingly, the local subsidiary will cease its business operations, and the continuation of its listing on the PSX is no longer aligned with the parent’s global business strategy.”
Gillette Pakistan has authorised capital of Rs400 million and 31.87 million issued shares of Rs10 each. The move follows P&G’s broader global restructuring announced earlier this year, which includes cutting about 7,000 non-manufacturing jobs over two years and exiting selected categories, brands and geographies. The Cincinnati-based consumer-goods giant, whose portfolio includes Pampers, Tide and Head & Shoulders, has been streamlining operations in several emerging markets.
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