LG Chem eyeing global top 5 chemical firm
LG Chem is seeking to establish itself as one of the top five chemical firms of the world, enhancing its capabilities and bracing for the future business environment.
To do so, the nation’s leading chemical company plans to invest 2.76 trillion won ($2.43 billion) to boost its competitiveness in existing businesses and nurture new businesses this year. The amount is up 40 percent from a year ago.
In addition, LG Chem will accelerate its efforts to upgrade its business structure and strengthen R&D to reach its ambitious target by 2025.
By sector, it plans to cement its market status in the field of basic materials and chemicals by advancing the business portfolio, centered on differentiated products, including elastomers, acrylonitrile butadiene styrene (ABS) and engineering plastics.
In this regard, the company plans to increase elastomer production to 290,000 tons by 2018 — the world’s third-largest volume by company. Moreover, in January it started operating a facility with an annual production capacity of 400 tons of carbon nanotubes in Yeosu, South Jeolla Province. It invested 25 billion won in the plant.
The world’s top automotive battery supplier, it will try to continuously win contracts regarding electric vehicles (EVs), hoping the competitive advantage will help the company hold the top position in the project of third-generation EVs whose range is more than 500 kilometers.
In terms of energy storage systems (ESS) and other batteries, LG Chem is set to focus on expanding its presence in newly emerging markets and improve profitability with differentiated and cost-effective products.
In IT and electronics materials, it intends to increase its profitability from LCD polarizer, while accelerating efforts to beef up its competitiveness in touch materials and reverse osmosis (RO) membranes that are widely used in various applications ranging from seawater desalination to wastewater reuse.
It was chosen last June to supply its high rejection NanoH2O seawater RO membranes for use in a Sohar desalination plant in Oman.
The firm has actively nurtured the future-oriented red bio sector after acquiring LG Life Sciences on Jan. 1.
In the field of life science, it focuses on three key businesses: fine chemicals, vaccines and pharmaceuticals.
While securing its leading position in the local market with high-profile products, including Eutropin, the nation’s first human growth hormone, and Zemiglo, the first diabetic drug developed in Korea, it plans to seek ways to expand its presence in the global market.