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LG Chem to invest 10 trillion Korean won by 2025 for eco-friendly materials

July 20/2021

MOSCOW (MRC) -- Shin Hak-chul, vice chairman of LG Chem, announced a large-scale investment plan worth 10 trillion Korean won in sustainable growth based on ESG, said Koreaittimes.

At a press conference held online on July 14, Vice Chairman Shin said that he plans to invest 10 trillion won by 2025, selecting eco-friendly sustainability business, battery-oriented e-Mobility, and develop new global innovation medicine. "Now, the criteria for measuring competitiveness in the business world should be based on 'Sustainability' in sales and operating profit," said Vice Chairman Shin. "This should be reflected in all business processes, strategies, investments, etc. From this perspective, we will innovate our business portfolio based on ESG and pursue sustainable growth."

Based on ESG, LG Chem selected three new growth engines to maximize growth potential of current businesses. The three new growth engines are bio materials, recycling, and renewable energy industrial materials, which will be invested 3 trillion Korean won in Sustainability businesses to foster them as future growth pillars of the petrochemical business.

LG Chem is planning to start full-scale production of the world's first Bio-balanced SAP product certified by ISCC Plus starting this month and supply it to global customers such as the U.S. and Europe. Bio-balanced SAP is an eco-friendly product that uses plant bio-renewable raw materials such as waste oil from Neste, Finland, and fossil fuels as basic raw materials.

As the bio-plastic market is expected to grow rapidly from 12 trillion Korean won in 2020 to 31 trillion Korean won in 2025, the company is also pushing for joint venture with Korean and foreign raw material companies to secure eco-friendly materials stably.

LG Chemicals is going to establish an eco-platform that provides eco-friendly packaging solutions and a virtuous cycle of plastic resources for cosmetics containers starting from the second half of this year. It is also pushing for joint research to apply recycled plastic materials such as Post Consumer Recycling (PCR) ABS to cosmetics containers.

The company is also planning to actively explore new business opportunities in markets for renewable energy industries such as POE/EVA for solar panels. To become the world's No. 1 comprehensive battery material company, it is planning to invest 6 trillion Korean won and foster a wide portfolio of products.

In the field of cathode materials business, it plans to start construction of a 60,000-ton Gumi plant annually in December this year with the aim of becoming a global leading company. The Life Science Business Headquarters will invest more than 1 trillion Korean won in the new medicine business with the goal of becoming a global medicine company with more than two innovative new medicines by 2030.

As it was said earlier, LG Chem announced on April 19 that it has obtained International Sustainability and Carbon Certification (ISCC) Plus certification for Bio-balanced products that were made from renewable plant materials such as waste oil and palm oil.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, propylene, ethylene, neftegaz, petrochemistry, LG Chem.
Category:General News
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