LG Chem aims to become global top five chemical firm

LG Chem aims to join the ranks of the world’s top-five chemical giants by 2025 with a focus on research and development to make its basic chemical and material businesses more advanced, the company said Thursday.

Under the vision, the company raised its 2017 capital expenditure to 2.76 trillion won ($2.53 billion), up 40 percent from a year ago.

In particular, the chemical and battery giant plans to reach annual elastomer production capacity of 29 tons next year, which will make it the world’s third-largest maker of the polymer.

LG Chem produces basic materials, catalysts and elastomer products.

Earlier this year, the company completed its carbon nanotube factory in Yeosu, South Jeolla Province. LG Chem invested 25 billion won into the facility that can produce 400 tons of the next-generation carbon material a year.

The nano material is renowned for its exceptional solidity and insulating efficiency. It is particularly used in rechargeable batteries and aircraft superstructures. As demand is expected to surge, LG Chem said it is considering more factories there in 2019.

For the battery business, the company is seeking to tighten its leadership by winning more contracts from electric vehicle manufacturers here and abroad.

Aside from the mid to large battery business, the company plans to expand its presence in small and innovative battery products for smartphones and state-of-the-art portable gadgets.

The company also has identified energy, water and bio as its mid- to long-term growth areas.

“We have spent 1 trillion won in research this year and will expand its volume by 10 percent each year,” a company official said. “The move is part of our efforts to become a sustainable company without being hit by external market uncertainties and managerial risks.” (Advertorial)