LG Chem to invest W300b in petrochemical facilities
LG Chem will invest a total of 300 billion won ($278.6 million) to expand its petrochemical facilities in Yeosu, South Jeolla Province, the company said Tuesday.
With the investment, the company plans to increase the annual production capacities of crude acrylic acid and super absorbent polymer by 180,000 tons and 100,000 tons, respectively.
CAA is used to produce acrylates and other derivatives used in paint, paper, textile, adhesives, specialty coatings. SAP is mainly used in disposable diapers, female hygiene products and adult incontinence products.
When the expansion is completed by 2019, the chemical giant’s annual production capacity of CAA will increase to 700,000 tons and SAP to 500,000 tons. LG Chem expects its annual sales to grow by 300 billion won.
The global market for SAP is expected to post annual growth of 5 percent, with annual demand reaching 6.75 million tons in 2020, from 5.9 million tons this year, the company said in a statement.
By Shim Woo-hyun (firstname.lastname@example.org)