LG Chem to build technology centers in U.S. and Europe

South Korea's LG Chem is investing significant resources into the European and North American markets, focusing on automotive materials, packaging films, construction and decorative materials
.
In North America, the company will build an ABS compounding plant and technology center with an annual output of 30,000 tons in Ohio, USA
.
In addition, a European Technology Center will be established in Frankfurt, Germany
.
The two facilities will cover an area of ​​approximately 82,000 square feet
.

LG Chem aims to have the two technology centers and compounding plants up and running by the end of 2023, with an investment of $100 million in the former and $50 million in the latter
.
Talking about why Ohio was chosen as the technology center and ABS plant, LG said it noted the location's ease of logistics and transportation, and proximity to LG Chem's major ABS customers in the automotive and construction sectors
.
Kug Lae Noh, President of LG Chem Petrochemical Company, said: "The Technology Center will enhance customer responsiveness through customized technical support optimized for the local market and play a key role in enabling LG Chem's strategic products to lead the global market
.
Starting from the pain point, we will provide them with differentiated insights and find various ways to expand their global business based on this
.
”

The US and European Technical Centers will each have a variety of test facilities to provide customers with tailored technical support
.
In addition, a total of 70 R&D personnel, including application technology teams for extrusion and injection molding and organizations dedicated to each major strategic product, will be stationed to provide technical support to customers
.
LG Chem already operates similar technology centers in Osan, South Korea, and southern China
.
The company is currently building a technology center in northern China, which is expected to start operations in 2022
.

LG Chem also pointed out that despite the high preference for local companies and products in North America, there is a lack of local capacity for ABS compounds
.
In particular, the demand for high value-added heat- and weather-resistant ABS continues to increase due to the development of the automotive, construction, and decorative material industries
.

LG Chem is also planning to build an ABS polymerization plant to meet North American customers, which account for 10% of global demand
.