LG Chem seeks to become global top 5

[能田]

(Biz & Tech The Korea Times Tuesday 24 July 2018)

Light industries

LG Chem seeks to become global top 5

LG chem's carbon nanotube plant in Yeosu, South Jeolla Province / Courtesy of LG Chem

Updated : 2018-07-24 18:29

Jun Ji-hye

LG Chem is seeking to become a global top 5 company in the chemical industry by 2025 through intensive preparations for the future in its core business units such as basic materials, batteries, electronic information and life sciences.

Toward that end, the firm plans to invest 3.8 trillion won ($3.3 billion) in capital expenditure  this year, a 52 percent increase year-on-year, in order to enhance its competitive power in its existing businesses and nurture new ones.

In the basic materials unit, the chemicals and biopharmaceutical business unit of LG Group will focus on increasing production capacity of elastomers to 290,000 tons this year. Elastomer is a high-value-added synthetic resin that bears characteristics of both rubber and plastic.

This will take the firm to the global top 3 position in the area after Dow Chemical and Exxon Mobil.

The firm also invested 25 billion won in its Yeosu plant in South Jeolla Province to establish its carbon nanotube plant with an annual production capacity of 400 tons, which began operation in January last year. The company plans to increase its sales volume gradually and build an additional plant next year.

In the battery division, LG Chem aims to maintain its top spot in third-generation electric vehicles, which can travel for more than 500 kilometers, and actively target the ESS battery market with products with cost efficiency.

The firm will also accelerate efforts to explore new markets with miniature fuel cells optimized for the latest mobile phones.

In the electronic information material unit, the company will enhance profitability of its existing businesses such as Polaroid and strengthen competiveness in new businesses such as water treatment and functional films.

It has consistently built additional plants for Polaroid in China to solidify its global No. 1 position in the market.

In June last year, the firm also signed a deal with the Egyptian government to exclusively supply Reverse Osmosis (RO) filters for the country's largest 300,000-ton seawater desalination facility.

The firm plans to unveil RO filters for the home and make a foray into new markets including China and India.

In the life sciences division, it will focus its efforts on the development of new medicine for diabetes, immunity and treatments for cancer.

Meanwhile, the company has selected energy, water and bio areas as new growth engines, it said, adding that it will significantly expand its investments in R&D.

Last year, the firm invested 900 billion won in R&D and plans to increase the investment by more than 10 percent every year.

(Advertorial)

jjh@ktimes.com More articles by this reporter