LG Chem to invest 2.6 trillion won to build 10 new factories

LG Chem has announced plans to develop an ESG-based environmental business center at the Daesan Integrated Refinery and Petrochemical Complex in South Korea's Chungnam Province
.
The company said it plans to build 10 new factories by 2028, a mammoth project that will require an investment of about 2.
6 trillion won
.

CEO Hak Cheol Shin said: "The investment agreement is part of a sustainable growth strategy and a signal to announce a full scale up of the eco-friendly materials business
.
"

The first step has now been completed, and the company has signed investment agreements with Chungnam Province and Seosan City
.
Under the agreement, LG Chem has acquired a new site with an area of ​​790,000 square meters in addition to the existing Dashan complex site, which will be used for plant construction and investment in related environmentally friendly materials and processes
.
The company is actively promoting ESG-based businesses, from the production of biological raw materials to eco-friendly materials, recycling waste plastics, and reducing greenhouse gases
.
The investment is also expected to create new jobs for about 400 people through direct employment and will actively contribute to the revitalization of the local economy
.

The project will first build a PBAT plant with an annual output of 50,000 tons and a POE plant with an annual output of 100,000 tons
.
Although based on fossil fuels, PBAT breaks down rapidly in nature under the influence of oxygen, heat, light and enzymatic reactions
.
It is mainly used in agricultural and disposable film applications
.
POE has the dual properties of rubber and plastic and is produced using LG Chem's proprietary metallocene catalyst
.
Its main applications are solar films, automobile bumpers, footwear shock-absorbing layers, wire and cable covering materials,
etc.

LG Chem already operates a POE plant in Daesan with a current annual capacity of 280,000 tons
.
The new plant will expand production capacity to 380,000 tonnes, making it the second largest in the world
.

Both new plants are targeted to be in commercial production by 2024
.
The resulting sales growth is expected to exceed 470 billion won per year
.

According to industry sources, PBAT and POE are expected to continue to grow at an average annual growth rate of 30% through 2025
.

LG Chem's plan represents a large-scale domestic investment in South Korea to promote environmentally friendly materials in the petrochemical industry, with the aim of initiating a transformation of the business structure towards a high value-added sustainable business and eco-friendly materials
.

"This investment not only strengthens our long-term partnership with Chungnam Province and Seosan City, but also further enhances the level of cooperation for a sustainable future," concluded Hak Cheol Shin
.