LG Chem rushing to reach global top 5
LG Chem is rushing to join the global top five chemical giants by expanding its investment volume to 2.76 trillion won ($2.44 billion) this year in equipment and facilities, the company said Sunday.
This would be a whopping 40 percent growth from a year ago. The invested capital will be used to enhance the firm’s basic materials business and develop source technologies for its battery unit, according to the nation’s leading chemical firm.
This is in line with its yearly plan unveiled earlier this year, in which the company said it aims to enter the top five by 2025 by bolstering the fundamentals of its core businesses.
“In particular, we are going to boost the production of value-added synthetic resin _ elastomer _ by 290,000 tons by the end of next year, in a bid to grab the No. 3 position in the industry,” the company said in a statement.
LG Chem holds key capabilities to produce elastomers ― including metallocene catalysts and their processing technologies ― allowing the firm to make not just raw materials, but end products for synthetic polymers.
The company recently started mass-producing carbon nanotubes at its manufacturing facilities in Yeosu, South Jeolla Province, in what the firm says is a move to remain agile in expanding its revenue streams in lucrative next-generation petrochemical products.
LG Chem invested 25 billion won into the facility, allowing the firm to manufacture 400 tons of carbon nanotubes each year. The company is also considering building additional manufacturing facilities in 2019.
Aside from the basic materials, the company also unveiled its grand blueprints to forge leadership in its battery business by focusing on securing core technologies.
“Our battery unit will tighten our globally leading presence by winning more projects for third-generation electric vehicle (EV) batteries to travel more than 500 kilometers per charge,” LG Chem said.
Backed by its technological expertise in the area, the company said it would also expand its global profile in the area by unveiling more large-sized batteries ― including those for energy storage systems (ESS) which are gaining traction each year amid growing importance for more energy-efficient facilities.
Last year, LG Chem invested 670 billion won last year in R&D.
“We will expand our R&D investment this year in our three core mid-to-long-term growth areas ― energy, water and bio,” said the company.
