LG Chem Vice Chairman Shin Hak-cheol.

LG Chem is expanding the production of nitrile butadiene latex (NBL), a raw material for producing nitrile gloves whose demand is seeing explosive growth amid the COVID-19 pandemic.

LG Chem signed a deal with Petronas Chemicals Group (PCG), the state-run petrochemical company, to build an NBL plant with an annual capacity of 200,000 tons in Pengerang, southern Malaysia. The project will be launched next year, and production will start in 2023 in earnest.

The two companies’ stakes in the joint-venture and investment amounts were not disclosed. Considering the prospect of continued growth in the NBL market, LG Chem made up its mind on the investments. NBL is a synthetic rubber, made with butadiene, a main ingredient.

Demand for nitrile gloves has shot up amid the coronavirus pandemic as they are used as a hygiene item. The size of the global nitrile glove market is predicted to surge with an annual average growth rate of more than 10 percent to about 7 trillion won in 2024.

LG Chem continues to expand production of NBL. The company launched a project to build an NBL plant with an annual production capacity of 100,000 tons in Ningbo, China, in April. The plant is expected to begin mass production of NBL early next year.

The combined production of the China and Malaysia plants is forecast to surge to 470,000 tons in annual capacity. Currently, production of the global NBL market stands at 2 million tons per annum.

An LG Chem official said, “We’ll be able to enter Malaysia, the world’s largest nitrile glove production country, in a stable fashion by utilizing PCG’s site and infrastructure.”

Currently, as a massive petrochemical complex is being built in the Pengerang area where the NBL plant will be located, the joint venture is expected to secure a stable supply of essential raw materials.

A view of LG Chem’s plant at the Yeosu Industrial Complex. (Photos: LG Chem)

LG Chem Inaugurates ‘M-Project’ to Ensure Safety of Plants in Korea & Abroad

LG Chem announced a plan to experience no major environmental or safety accidents next year.

The plan was dubbed “M-Project,” named after an initial letter of magnolia, reminding the occurrence of plant explosions in India and Daesan, Chungcheongnam-do, in May when the flower was blossomed.

LG Chem inaugurated the M-Project, comprising of in-house environment, safety, process technology exporters as well as outside institutions to prevent such accidents.

The company has already finished emergency safety diagnoses of highly dangerous processes and facilities at 37 site operations – 15 Korean and 22 foreign plants and explored 590 recommended tasks. LG Chem has already secured 81 billion won in additional investments related to environment and safety.

In particular, LG Chem attached top priority to ensuring environment and safety. LG Chem Vice Chairman Shin Hak-cheol in person toured plants and presided over related on-line conferences.