LG Chem is Korea’s representative exporter company, earning more than 60 percent of its annual total revenues from foreign markets. The company, which has production, sales and branch operations in 15 countries, exports basic materials, batteries, information and electronics materials, and life-science-related items to about 160 countries.
LG Chem plans to lead global markets with such premium products with a competitive edge as acrylonitrile butadiene styrene (ABS) resin, EV/ESS batteries, polarizing plates, water treatment filters, and hyaluronic acid fillers.
The Basic Material Business Division will continue to invest into such value-added products as ABS, acrylic acid resin/ super absorbent polymer (SAP) as part of its efforts to upgrade its product portfolios.
LG Chem maintains the global No. 1 position in the value-added ABS resin business. The company will pour a combined $100 million by the end of this year into expanding an ABS plant in Huanan, Heilongjiang Province, China, with a capacity of 300,000 tons by 150,000 tons. The figure will raise to 2 million tons the company’s combined capacity in Korean and abroad plants.
LG Chem has a plant in Yeosu with a capacity of 900,000 tons and Ningbo plant with 800,000 tons. The expansion will allow LG Chem to raise its global market share from current 21 percent to 26 percent to retain the top position.
LG Chem will pour a combined 300 billion won by the first half of next year to expand its acrylic acid resin and SAP production capacities by 180,000 tons and 100,000 tons, respectively. The completion of the expansion will enable LG Chem to have a production integration system capable of producing 700,000 tons of acrylic acid resin and 500,000 tons of SAP.
LG Chem plans to continue to raise the portion of value-added products with the goal of seeing revenues from such value-added products as elastomer, high-functional ABS, engineering plastic, next-generation SAP and eco-friendly synthetic rubber from current 4 trillion won to 7 trillion won.
The Battery Business Division focuses on global market expansion by ramping up EV battery supplies and the global standing in the ESS battery sector, and strengthening new small-sized battery businesses.
The company has signed long-term contracts with global automakers, including GM, Ford and Chrysler in North America, Renault, Volvo, Audi and Daimler in Europe to supply EV batteries. LG Chem’s outstanding orders stand at 42 trillion won. The company has set up a largest-ever, quadratic EV battery production regime connecting Ochang, Holland, the Unites States, Nanjing, and Wroclaw, Poland.
In the ESS battery sector, LG Chem is ramping up its global market position by signing long-term supply contracts with several European customers through development of differentiation products in terms of performances and prices. LG Chem is exporting small batteries to notebook PC, smartphone, electric motion tool and electric bicycle makers in North America, Europe and China while striving to explore new markets.
The Life Science Business Division is exporting more than half of its products to about 70 counties. The mainstay hyaluronic acid filler “YVOIRE” is the No. 1 Chinese filler market leader. Diabetes drugs, hepatitis B vaccines, and growth hormone drugs are exported to about 70 countries.
The division chalked up more than $200 million in annual exports last year. YVOIRE, which made its debut in China in 2013, has emerged as a best-seller there since 2016.
LG Chem Logs Best-Ever Business Performance in 2017
LG Chem logged its best-ever business performance in 2017 since its establishment, riding on the success of the global petrochemical product boom and turning a profit in the battery business. The company chalked up 25.69 trillion won in sales and 2.92 trillion won in operating profit, equivalent to earning 56.1 billion won in profit weekly.
At an IR session at the LG Twin Tower in Yeouido, Seoul, on Jan. 31, LG Chem announced the 2017 business performance results. The 2017 figures represent a 24.4 percent jump in sales and a 47 percent jump in sales compared to the previous year.
The rate of operating profit to sales surged 11.4 percent, up 1.8 percentage points from 9.6 percent. The company posted 6.43 trillion won in sales and 615 trillion won in operating profit for the fourth quarter of last year, representing a 16.7 percent surge and a 33.2 percent jump over the same period of 2016, respectively. Such petrochemical products as ethylene, engineering plastic, and PVC led the charming business performance. The business sector of basic materials for producing petrochemical products accounted for 2.8 trillion won, or 96 percent of the total operating profit.
Petrochemical products are in short supply thanks to the improving global economy. The battery and information electronics businesses, as well as Farm Hannong, a subsidiary of LG Chem, turned a profit.