SEOUL, Aug. 13 (Korea Bizwire) — Amid the sluggish petrochemical market due to low global economic growth and low demand from China, LG Chem plans to overcome the situation with a two-track strategy of reinforcing technology-based business and developing new materials.
LG Chem, a leading electric vehicle battery maker, made the two-track business plan to grow its the petrochemical sector which accounts for 75 percent of its sales by pouring 120 billion won of R&D investment into the sector.
Most of all, it aims to raise the sales of technology-based business including engineering plastic, super absorbent polymer and synthetic rubber to 4.5 trillion won in 2018 from current 2 trillion won.
In case of engineering plastic production, it set up an ambitious plan to become one of top-three global EP makers by increasing its product lineups from functionally eco-friendly products for IT products and LED lightings and auto parts.
By increasing production facilities for super absorbent polymer, it will raise SAP sales to 1 trillion won in 2018 and aims to lead the market. For the purpose, it is expanding the production facilities in its Yeosu plant by investing 320 billion won to increase its capacity to 360,000 tons of SAP.
In the synthetic rubber sector, LG Chem tries to reap to the leading producer of eco-friendly tire for automobiles by increasing its portion to 40 percent by 2018 from current 10 percent.
In addition to reinforcing the existing petrochemical businesses, it mapped out to bring up new business opportunities developing new materials including carbon nanotube, carbon dioxide plastic and securing original technologies in major materials.
Park Jin-soo, vice chairperson of LG Chem, said, “In order to grow up as a leading materials company, it is important for us to reinforce the business structure of the petrochemical sector. By developing technology-based differentiated products and new materials through R&D efforts, we will form our business structure to make excellent results under any circumstances.”
By John Choi (firstname.lastname@example.org)