ITALY/KOREA (SOUTH): LG Chem signs supply deal with Italian firm

"LG Chem will take this chance to increase its presence in the European region, and grow into a world-leading chemical firm,” CEO Park said.

One of the major outcomes of the agreement, according to the firm, is that it will supply metallocene Linear Low Density Polyethylene (mLLDPE), a synthetic resin, produced on the basis of the Korean chemical firm's proprietary polymerization technology known as metallocene catalyst.

The mLLDPE is used for agricultural or industrial films such as greenhouse vinyl film, wrappings for electronic goods and even wrappers for food since it is nontoxic, according to an LG Chem official.

The Seoul-based firm said it could supply the resin products worth tens of billions of won to the Milan firm. With the world's market for the mLLDPE expected to see 8% yearly growth, the product's global trade volume is forecast to grow from 39 million tons in 2012 to 58 million tons in 2017, according to LG Chem.

Versalis is Italy's biggest petrochemical company, running 14 chemical factories in five European nations including Germany and France. The Italian firm, which produces ethylene, propylene, synthetic resins and synthetic rubber, earned 6.4 billion EUR in sales in 2012 and is wholly owned by Eni S.p.A, an Italian multinational oil and gas company.

Source: Daily "The Korea Herald", Seoul; 24 Oct 2013(Syed Rashid Ali, Karachi, Pakistan)