LOTTE Chemical Titan Holdings Bhd (LC Titan) announced the temporary shutdown of its Naphtha Cracker Number 1 plant at the Pasir Gudang Complex in Johor, effective December 15, to address losses caused by a prolonged downturn in the petrochemical industry.
The plant has a capacity of 430,000 tonnes per annum.
LC Titan told the stock exchange in filing today that it will consider resuming operations if market conditions improve.
The shutdown results in a revised 2024 operating guidance of 55%-60% for its plants in Malaysia and Indonesia.
The company has faced ongoing challenges, including negative margins over the past two years, contributing to a widening net loss.
For 3Q 2024, LC Titan’s net loss grew to RM246.42 million, compared to RM55.58 million in the same period last year.
For the first nine months of 2024, the net loss increased to RM673.33 million from RM593.81 million in 2023.
The company’s stock hit an all-time low of 3 sen, closing at 63 sen today with a market capitalisation of RM1.45 billion. –TMR