South Korea’s Lotte Advanced Materials Co. acquired Turkey’s leading engineered stone maker Belenco in a 125 billion won ($111.4 million) deal to gain a foothold in Europe’s premium interior material market.

Lotte Advanced Materials, a subsidiary of Lotte Chemical, said Thursday it has taken up a 72.5 percent stake in Belenco to leverage the Turkish firm’s dominant presence in the engineered stone market.

Engineered stone is a man-made product that is composed of 90 percent natural quartz. It has the look of natural marble but is more durable and versatile, with applications ranging from home kitchens and bathrooms to indoor flooring and walls in hotels and hospitals.

Belenco headquarters are situated in Manisa Organized Industrial Zone (OIZ), Turkey’s third-largest industrial complex. The company boasts an efficient logistics network thanks to its proximity to the port of Izmir and natural mineral deposits. Its factory consists of two production lines capable of churning out 230,000 sheets of engineered stone a year.

Lotte Advanced Chemicals’ plant in Yeosu, Korea has a production capacity of 90,000 sheets. With the acquisition, it plans to ramp up manufacturing facilities to catapult its standing to the global top five.

The move is part of Lotte Group’s broader strategy to premiumize its chemical portfolio to more value-added specialty materials. The company said it plans to step up investments in related businesses at home and abroad to further its upscale efforts.

By Lee Jae-cheol and Kim Hyo-jin

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