KOREA (SOUTH) LG Chem to focus on advanced plastic goods to overcome market slump

"It will be important for us to strengthen our business structure in the petrochemical sector, which provides more than 75 percent of our total revenue, to further grow into a global materials business," said Park Jin-soo, vice chairman and CEO of LG Chem.

"The conventional business cycle of the global petrochemical industry is starting to collapse, making it difficult to make significant profits from our existing product portfolio. Against this backdrop, we will focus on uncommon products based on out material technology and on development of new materials to make profits out of any difficult business circumstance."

First, LG Chem plans to increase the revenue from material technology-based products ? engineering plastic (EP), super absorbent polymer (SAP) and synthetic rubber ? from the current 2 trillion won to 4.5 trillion won by 2018.

In manufacturing EP products, the company will put more emphasis on high functional eco-friendly products for IT goods and LED lamps, and ones for automobiles, aiming at jumping into the global top 3 by 2018.

"We will increase the sales revenue ratio of EP products for automobiles to 50 percent, up from the current 30 percent by 2018, because we expect the global market for this product to increase 6 percent every year. The Chinese market, in particular, is anticipated to post more than 8 percent annual growth," the company said in a statement.

Secondly, LG Chem will expand the range of its business.

It will invest 120 billion won in research and development of the petrochemical sector to discover new business opportunities from new materials.

In addition, it will develop new materials and related original technologies.

Source: Daily "The Korea Times", Seoul; 13 Aug 2014
Syed Rashid Ali