2003.07.27 LG Chem

LG Chem, expands its PVC capacity at Tianjin to 340,000 ton/year

LG Chem, Ltd., the largest chemical company in Korea, announced today that it has raised its PVC capacity at its Tianjin LG Dagu Chemical facility by 100,000 ton/year. A dedication ceremony took place on the 25th of July in Tianjin City, China.

PVC (Poly Vinyl Chloride) is one of LG Chem's core petrochemical products used in producing a wide range of plastic products related to the building and construction sector as well as high voltage electric cables, medical gloves, etc.

With the 100,000 ton expansion, Tianjin LG Dagu Chemical now has a total PVC capacity of 340,000 ton/year. This is the 3rd expansion LG Chem has made at its LG Dagu facility, which initially started out with a PVC capacity of 100,000 ton/year.

"The Chinese market has a potential of further expansions in PVC since its PVC supply is much lower than demand. LG Dagu's expansion is in line with such circumstances," said Churl-Ho Yoo, the Executive Vice President of LG Chem's Petrochemical Business.

"For further growth in its PVC business, LG Chem has set long term plans to increase its annual PVC capacity to 2.05 million tons (Korea 0.95 mil, China 1.1 mil) by 2010," Yoo added. This is expected to elevate the company's position to the 3rd largest PVC producer in the global market.

LG Chem is now the 6th largest PVC producer in the world with a total capacity of 1.13 million tons per year. (Korea 0.79 mil, China 0.34 mil)


LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high-value added plastics, floorings and automotive parts. It also expands its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.

With annual sales of KRW 5.4 trillion (Yr 2002) and a global workforce of approximately 10,000 employees, LG Chem plans to realize positive progress towards sustainable growth by consolidating its leadership in the domestic market and building leader businesses outside of Korea.

Facts on LG DAGU

TIANJIN LG DAGU CHEMICAL CO. LTD. (www.lgdagu.com.cn)

Location Tianjin, China
Establishment 1998. 5.
Capital/ Ownership US$ 37.4million / 75%(LG group 85%)
Capacity 100,000 ton/year ('98.4)
150,000 ton/year ('99.10)
240,000 ton/year ('01.10)
340,000 ton/year ('03.7)

PVC Demand/Supply in China










LG Chem's expansion plans are excluded









World Top10 PVC producers -----------------(Unit: 1000 ton)









Japan, U.S.

Shin-etsu + Rovin




Taiwan, U.S.

FPC(Taiwan) 1.4 mil ton


Oxy Vinyls



OxyChem + Geon












LG Chem


S. Korea






















Source: CMAI report/LG Chem (2003)


2003.07.28 LG Chem

LG Chem marks an epoch in the Non-phosgene Polycarbonate Process

LG Chem, Ltd., the largest chemical company in Korea, announced today that it has independently developed a new Non-phosgene Polycarbonate Process using its own technology. With the development of this new 'Condensed Non-phosgene Polycarbonate Process', LG Chem has marked an epoch in the non-phosgene polycarbonate process.

Polycarbonate is an engineering plastic widely used in optical discs (CDs and DVDs), automotive and electrical applications, housing components, industrial equipments and computers. This diversity in usage comes from its unique properties of high strength, heat resistance and excellent dimensional and color stability.

The non-phosgene polycarbonate process is known to be an environmentally friendly method compared to the conventional interfacial polycarbonate preparation process, which uses phosgene gas. This phosgene-free process lowers the production cost by eliminating the need for extra care of the phosgene gas.

"Compared with the conventional phosgene process, the newly developed process is likely to reduce investment costs by 70%. For instance, the investment for a plant with a capacity of 60,000 metric ton per year can be significantly reduced to less than USD 100 million from USD 250 million," said Jong-Kee Yeo, the CTO and president of LG Chem. There
is also the added benefit of lower production costs by reducing the plant operating cost.

Only a few companies, worldwide, have succeeded in developing the environmentally friendly non-phosgene polycarbonate process. LG Chem's Condensed Non-phosgene Polycarbonate Process has been taken a step further by solving the problems of product quality and long production time that other non-phosgene polycarbonate processes have.

"The new process developed by LG Chem can reduce the total production time by more than half and has enhanced the quality of the resin itself in terms of transparency and color,"the CTO added.

The Condensed Non-phosgene Polycarbonate Process is a result of perseverance and countless hours invested in its development since 1997. In addition, it is the outcome of LG Chem's decade-long effort to develop environment-friendly processes along with the
Non-phosgene MDI (Methylene Diphenyl Diiocyanate) process developed in 1995. The Condensed Non-phosgene Polycarbonate Process is currently patent pending in 9 countries such as the U.S., Japan and Germany.

LG Chem is likely to see great benefit by exporting its highly advanced non-phosgene MDI technology as well as its newly developed non-phosgene polycarbonate technology. Furthermore, the company said that it would also consider of forming a joint venture with a foreign partner to pave the way towards overseas expansion.


LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high-value added plastics, floorings and automotive parts. It also expands its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.

With annual sales of KRW 5.4 trillion (Yr 2002) and a global workforce of approximately 10,000 employees, LG Chem plans to realize positive progress towards sustainable growth by consolidating its leadership in the domestic market and building leader businesses outside of Korea.

Overview of the Polycarbonate market

Polycarbonate resins offer an exceptional combination of clarity along with heat and impact resistance and also have very high ductility and toughness over a wide temperature range. In the 1980
s, the demand for polycarbonate resins increased very rapidly. In the year 2000, world polycarbonate resin capacity reached 2.2 million metric tons. In East Asia, an estimate of the average annual consumption between 2001 and 2005 is expected to be the fastest growing, averaging 12.5%.

Phosgene / Non-phosgene Polycarbonate process

There are two conventional polycarbonate processes: the interfacial polymerization process and the melt polymerization/solid-state polymerization process.

1) Interfacial polymerization process (phosgene process)
  The interfacial polymerization is carried out in a solution of bisphenol-A (BPA) and phosgene at the interface. Although this process can easily produce high molecular weight polycarbonate resins, it has disadvantages such as the safety problem of handling highly toxic phosgene and the large investment cost of dealing with the environmental problems created by the process.
2) Melt polymerization and Solid-state polymerization process(non-phosgene process)
  The melt polymerization involves the reaction of diphenyl carbonate (DPC) with bisphenol-A (BPA) to produce a low molecular weight polycarbonate prepolymer at the melt state. High molecular weight polycarbonate is synthesized at the solid-state polymerization step.High temperature and high vacuum equipments are required to handle highly viscous
reactants, which lowers the quality of the resin in the melt polymerization step. Long production time is required at the solid-state polymerization process.
LG Chem's Condensed Non-phosgene Polycarbonate process
  LG Chem's Condensed Non-phosgene Polycarbonate Process cut the production time of polycarbonate in half compared to other non-phosgene processes. The melt-polymerization process of trans-esterification between DPC and BPA is designed to reduce the production time with excellent prepolymer quality. Polycarbonate prepolymer is further crystallized and polymerized to form polycarbonate in the solid-state polymerization process by adopting a newly designed single reactor.

Overview of MDI (Methylene Diphenyl Diiocyanate)

MDI is a raw material for Polyurethane. Pure MDI is used for casting elastomers and spandex fiber, thermoplastic elastomers. Polymeric MDI is mostly used for insulating and automotive materials. The global market size for MDI in the year 2000 was 2.4 million metric ton. Annual production of MDI in Korea is 130,000 metric ton.

The process for MDI production generally involves the use of phosgene, a toxic substance.
However, in 1995, LG Chem succeeded in developing an environmentally friendly and cost effective process that eliminates the use of phosgene. This newly developed process was introduced in the 'PEP Review', a research booklet published by Stanford Research Institute (SRI), with 11 domestic and 3 international patents.

2004-1-22 Asia Chemical Weekly

S Korea LG International in Russian ethylene, refining jv

LG International Corp (LGI), the foreign investment arm of South Korea's LG Group, said that has it formed a joint venture, the Tatar-Korean Petrochemical Co (TKNK), with partners in Russia to construct a refinery and petrochemical complex in Nizhnekamsk, Republic of Tatarstan, Russian Federation.

The complex will produce
600 000 tonne/year of ethylene and have the capacity to refine 7m tonne/year of oil, LGI said. It will also include plants for the production and refinement of polymers, the company said.

It did not provide further details on the financial or technical details of the project. LGI said that it would continue to work on this project and any other progress made on the business would be announced as soon as possible.

The first meeting of the board of TKNK was held on 16 January and full cash details on the project are still under development. However, LGI confirmed that TKNK is seeking a $600m (Euro476.7m) credit from a consortium of western banks to fund the first stage of the refinery's construction.

Tatneft JSC owns 45.45% of the new company, while Nizhnekamskneftekhim Inc has a 36.37% stake. Svyazinvestneftekhim, an Ignatov & Co Group company that holds shares in both Tatneft and Nizhnekamskneftekhim, and
LGI both hold 9% stakes.

Platts 2004/6/30

LG expects Tatarstan oil/petchem project financing by year-end

South Korea's LG group expects to settle a financing plan by December for
a joint venture oil refinery and petrochemicals project in the republic of Tatarstan, sources at LG said Wednesday. A source from LG's construction and engineering subsidiary said the project's final scope and investment requirements would not be finalized until the end of the year.

LG had signed preliminary agreements late last year with Russian oil firm Tatneft, the Tatarstan government, and local refiner Nignekamskneftekhim, according to local press reports. The wordlscale refinery should be up and running in two years, the LG source said, without offering a timetable for the petrochemicals stage.

2004/9/22 Reuters

LG clinches $3bn Russian deal

South Korea's LG International Corp. and affiliate LG Construction Co. have clinched a $3 billion petrochemical plant deal with Russian oil firm Tatneft, LG International said Wednesday.

The deal, which LG said was the biggest of its kind in Russia, was struck during South Korean President Roh Moo-hyun's visit to Moscow for talks with Kremlin chief Vladimir Putin.
The two leaders have been discussing energy issues, along with North Korea and its nuclear plans.

The plant would have a daily refining capacity of 150,000 barrels of oil and produce polyethylene and other petrochemical products, LG International said in a statement.
Construction was scheduled to begin in 2005, it said.

Shares in LG International jumped 5.64 percent to 9,370 won Wednesday morning, outperforming a 0.11 percent decline in the broader benchmark stock index, after the deal was announced.

The deal followed an agreement on Monday between South Korea's state-run Korea National Oil Corp. (KNOC) and Kazakhstan's state oil firm KazMunaiGas on an upstream oil project in the oil-rich Caspian Sea. Roh stopped by Astana en route to Russia.
South Korea, the world's fourth-biggest oil buyer, imports all of its crude oil and natural gas needs, and is keen to diversify oil and gas supplies away from the oil-rich but volatile Middle East to others including Russia and Kazakhstan.

2004/9/22 Platts

Tatarstan sign $1.7-bil petchem, refinery deal.

Tatarstan-Korean Petrochemical Co and South Korean LG have signed a $1.7-bil agreement to construct a refinery in Tatarstan. The agreement was signed in the presence of Russian president Vladimir Putin and South Korean president Roh Moo-Hyun in Moscow. The project is expected to be expanded to include a petrochemical complex pushing the total project cost to $3-bil. The first stage of the project proposes construction of a 7-mil mt/yr (140,000 b/d) refinery to handle heavy, high sulfur oil produced in Tatarstan and Bashkortostan and is to start at the end of the year. The second stage, at a cost of $1.2-bil, envisages a 600,000mt/yr ethylene unit. The Tatarstan-Korean Petrochemical Co was set up in January by Tatneft (45.45%), Nizhnekamskneftekhim(36.37%), Tatarstan authorities (9.09%) and South Korea's LG International (9.09%).

2004.09.23 LG International

LG International-LG E&C won a $3 billion project from Tatarstan

Signed a $ 1.7 billion contract for a phase I project and agreed on a 1.3 billion phase II project, to build a petrochemical and oil refining complex.
The largest ever, paved the way for entering the Russian plant market in the future.

LG International Corp., together with LG Engineering &Construction, won a $ 3 billion project to build a petrochemical and oil refining complex in Tatarstan. The project is the largest ever in the history of Korea-Russia relations.

In the Moscow Kremlin on September 21, 2004, LG International Corp. and the Republic of Tatarstan agreed to build a petrochemical and refining complex through the two-stage project worth $ 3 billion in total. Attended by presidents from Korea and Russia, LG International Corp and the Tatarstan government signed a $ 1.74 billion agreement for the construction of oil processing facilities through the phase I project.

This $ 3 billion project is designed to build the petrochemical and oil refining complex during the phase 1 and phase 2($1.3 billion) in the eastern area, about 1000 km away from Moscow in Russia.

The project of TKNK(Tatarstan Korea Neftekhim), a joint venture is the largest construction of petrochemical facilities in the history of Russia. LG International and LG E&C participated in the joint venture.
LG International will finance the project while LG E&C will carry out the designing, procurement and construction (EPC turnkey) for the project.

The construction will be funded through project financing for the first time since the financial crisis hit Russia. After the construction and testing for about 4 years and 4 months from 2005, the complex will be operated in full swing.

After the completion of the project, Tatarstan will be capable of refining150,000 barrels per day and producing petrochemical products such as polyethylene and EPS. Accordingly, Tatarstan will have the consolidated production facilities in refinery and petrochemistry, which build a foundation for transforming its industrial structure into high value added one.

LG International Corp. seized an opportunity to win the $ 3billion plant construction project by participating in the establishment of the joint venture, TKNK(Tatarstan Korea Petrochemical Co) with Tatneft, NizheKamskNeftKim and Svyazinvestmentholding Co., in a close cooperation with its Moscow branch that gathered the related information at an early stage. LG International will be responsible for project financing, which is the largest contributor to wining the project, and product marketing. In this way, it will oversee the overall project execution.

Early this year, LG International won a contract for the construction of a polypropylene plant in Oman using its joint venture strategy for building a plant and securing the rights to product sale. Using this creative strategy once again, LG International Corp won the contract from Tatarstan. Accordingly, it strengthens its reputation as a leading project organizer.

In 1997, with a 700 million petrochemical plant construction in Qatar, the largest project at that time, LG International Corp. and LG E&C started to enter the Middle East market in earnest. In addition to the project to build the petrochemical and refinery complex in Tatarstan, they are also preparing for other projects. Thus, two companies show strong confidence in making inroads into the Russian market, the largest oil producer.

For the project, financial assistance for feasibility study was given by the Korea Plant Industries Association under the sponsorship of the Ministry of Commerce, Industry and Energy. With the help of the government
s strong support measure for export, massive investment was made in the initial development stage and it led to the successful singing of the contract for the project.

Platts 2004/2/12

Korea's LG Chem short lists three sites in China for EDC project

LG Chem, South Korea's largest chemical producer, has short listed Tianjin
(天津), Guangdong(広東省), and central China as three likely locations for a planned worldscale EDC plant, a company official said Thursday.

The capacity of the plant was not disclosed, but sources close to the company said it would be on
 the order of 300,000 mt/yr and the project would entail an investment of $250-300 mil. Work on the unit is expected to start in 2005. News of the site selection follows an announcement last summer that LG Chem had opted not to build the plant in Australia as originally planned because of high labor costs and overheads.

2004/2/19 LG Chem

LG Chem develops new EP material applying nanotechnology

LG Chem, Ltd., the largest chemical company in Korea, announced today that it has successfully developed a new high barrier EP material named HYPERIER® by applying nanotechnology.

EP (Engineering Plastics) Engineering Plastics are high performing plastics that are used as alternatives for metal hardware. They are highly durable to heat and impact, which makes it ideal for automobiles and electronic appliances components by enabling them to be more lightweight and portable.

®, is unique in terms of its high barrier capability of solvents, water, and gas, which are important factors when used for automobile fuel tanks and containers for food, cosmetics, pesticide, and so on.

The shortcomings of existing barrier materials lie in requiring multi-layers due to low molding ability and weakness in water. Moreover, high costs are unavoidable because of the expensive Multi-layer molding equipments and high error rates.

However, by applying nanotechnology to its new EP material, LG Chem has dramatically increased the barrier ability. Furthermore, its single layer molding capability provides cost effectiveness to processing companies by saving equipment and raw material costs.

"The development of HYPERIER is the result of perseverance and countless hours invested in its development since 2001. The success has great significance in that it is the world's first high barrier EP with the application of nanotechnology and that it is based on our own technology" said Jong-Man Oh, the Vice President of LG Chem's Engineering Plastics division.

LG Chem will soon commercialize its new EP material for cosmetic containers in the 1H of 2004. Moreover, co-research projects with car makers are currently in progress to apply HYPERIER
® for automobile fuel tanks in order to secure the global KRWon 1 trillion/ year market.

"We will exert efforts to provide total solutions from the designing stage to the processing techniques and material developments. Our target is to become the No. 1 company in barrier materials by securing 30% of the global market by 2008," Oh added.

Patents related to the company's new nanotechnology based EP barrier material are currently patent pending in China, Europe, Japan, Korea, U.S. Taiwan, etc.

® is a compound word of HYPER and BARRIER. By using nano size barrier particles, the permeation of solvents, water, and gas is dramatically reduced. Moreover, due to its high processing capability, HYPERIER® can be used for containers of various products.

2004/7/14 LG Chem

LG Chem becomes a global NPG producer through expansion

LG Chem, Ltd., the largest chemical company in Korea, announced today that it would expand its NPG (Neopentyl Glycol) capacity by 20,000 tonne to 50,000 tonne/year by 2005. Such an increase will position the company as the No.3 global producer and the No.1 producer in Asia.

NPG is the raw material for alkyd resin, unsaturated resin and powder resin. Such resins are used in paints for construction materials, electronic appliances, automobiles. Moreover, it is well known as an environment-friendly product.

Due to its high processability, water resistancy, and weather resistancy, the global demand for NPG has dramatically increased to a market size of KRW 600 billion. An estimated annual growth of 6% is expected. However, the high technology required for the production has been acting as a major obstacle in entering the market.

LG Chem first entered the NPG business in 1998 by becoming the world's 4th company to develop its own NPG production technology. "The development of our own technology was the result of perseverance and countless hours invested in its development since 1995," said SangYoun Lee, the General Manager of LG Chem's Acrylate & E-Chemicals' planning department.

For the NPG expansion of 20,000 tonne/year, a capital injection of KRW 20 billion will be made at its facility located at Yeosu, Korea. In addition, a new technology, with advanced reaction efficiency and yield rate by 30% and an energy saving rate of 50%, will be applied for the expansion.

"We have made a breakthrough by dramatically improving our technology. The capacity expansion with the application of our new technology is expected to provide an increase in export by more than USD 30 million," Lee added.

Korea currently has a NPG market of KRW 30 billion, where LG Chem is the sole producer. Moreover, the NPG market in China is forecasted to increase from its current KRW 150 billion to KRW 300 billion by 2008.

"Though advanced technology and enhanced capacity, we are planning to initiate aggressive marketing and solidify our position in the global market. As for our goal by 2006, we are aiming to capture a 15% global market share and a 25% market share in China," the General Manager said.

NPG Production Process

Global NPG Producers

Rank Company Capacity
(1,000 tonne)














LG Chem











2005/7/27 LG Chem

LG Chem to Expand Acrylic Acid Plant in Yeosu

LG Chem, Ltd., the largest chemical company in Korea, announced its plans to add a fourth acrylic acid plant in Yeosu by the end of 2007. The new plant will produce
80,000 mt/yr of crude acrylic acid. Through the new investment, LG Chem will have a total of 4 acrylic acid plants with a total production capacity of 240,000 mt/yr.

Acrylic acid, which is the raw material for acrylates, is a monomer widely used in over 3,000 products such as SAP (Super Absorbent Polymer), coating, adhesives, etc.

The existing three plants are situated in Naju and Yeosu. In these plants, the company uses Japan's Nippon Shokubai technology. However, LG Chem developed its own oxidation catalyst in 1998 and the catalyst has been applied ever since.

The new investment is particularly noteworthy, as LG Chem will be using
its own developed production technology. LG Chem's new process is an enhanced technology that improves the production efficiency and stability through a new reaction system and innovative purification technique.

Other than LG Chem, only three major chemical companies such as Nippon Shokubai Co. Ltd., BASF and Mitsubishi Chemical Corp. have their own technology to produce acrylic acid.

The main reason behind the expansion is to meet the growing demand in China. The company expects that the demand in China will maintain an average growth of 13% per year throughout the end of 2010. Another reason is that the company plans to maintain its position as the leader of acrylates in the Korean and Asian market.

The global market for acrylates is increasing at 4% annually whereas the Korean market is steadily growing at over 5% per year. In the Korean market, the automobile and ship building industry has been the driving force for the increase in demand for acrylates.

"As the new plant will adopt the most advanced process and technology, it will reinforce the competitiveness of the acrylate business of LG Chem," said Jeong O Kim, Vice President of the Acrylates Division.

The company expects to generate annual sales of KRWon 110 billion from the new plant. In addition, the company is currently studying the possibilities of establishing another 160,000 mt/yr acrylic acid plant in China to build a leading position in the fast growing market.

Overall, LG Chem has decided to nurture the acrylate business as one of the company's strategic products.

Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high value added plastics and high performance industrial materials. It also extends its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.

2004 Acrylic Acid Producers in terms of capacity
  Unit: KMT

Rank Company Capacity License


BASF (Germany)


Own Technology


R&H (U.S.A)








NSCL (Japan)


Own Technology


LG Chem (Korea)



 * LG Chems new plant will apply its own technology.

Acrylic Acid Supply and Demand
  Unit: KMT

Category 2004 2008 2010 CAGR
Capa Demand Capa Demand Capa Demand

























* Source: Tecnon (2004), LG Chem

2005/8/31 LG Chem

LG Chem Develops New Production Method for LCD Color Filters

LG Chem, Ltd., the largest chemical company in Korea, announced today that it developed its own production method to produce color filters, a key component for LCDs. Also the new development is a departure from the previous 'photolithography method'.

A color filter is a key component, which sharpens the color of LCDs. It also accounts for 20% of the manufacturing cost of the LCDs.

The new production method enables LG Chem to simplify the manufacturing process and saves manufacturing cost and time by reducing its production stages from 16 to 3 steps.

The new process is an
'Ink Jet Printing Process' which prints ink on the surface of the LCD glass plate. It is a process that can be described as printing paper on an ink jet color printer.

The 'Ink Jet Printing Process' is considered as a 'Holy Grail' process for color filter manufacturing. LCD panel companies have been craving to develop this process to compete against the PDP (
プラズマディスプレイ) manufacturers in price. In addition, LCD equipment manufacturers have also been longing to develop this process.

LG Chem was the first in Korea to ever develop this new production method and it is expected to provide LCD manufacturers a competitive edge over PDP manufacturers. Currently, LCD TVs are priced higher than PDPs in the market. This will be an opportunity to popularize LCD TVs.

Also, with the 'Ink Jet Printing Process', LG Chem will be able to save more than 50% on its manufacturing cost.

"In the display industry, Korea has been dependent on raw materials and manufacturing processes from Japan, however, this new development will make it unnecessary for us to rely on imports for LCD raw materials and manufacturing process," said Jong-Kee Yeo, President and CTO of LG Chem.

"Not only did LG Chem develop its own development method but also it developed its own technology to produce the raw materials. This will significantly enhance the domestic LCD manufacturers to gain more market share in the global market," the CTO added.

Editor's Note
Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high value added plastics and high performance industrial materials. It also extends its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.

Comparison between the previous and new method
The new production method greatly reduces manufacturing cost and time, making the previous 16 development stages into 3.

September 06, 2005 Dow

LG-DOW Proceeds with Project for Second Polycarbonate Train
Start-up Will Bring 65,000 Metric Tons to Korea and Broader Pacific Markets

LG DOW Polycarbonate Ltd. (LG-DOW), a 50/50 joint venture between The Dow Chemical Company and LG Chem, Ltd., today announced the next steps in a plan to build its second polycarbonate train in Yeosu, Korea.

"Basic engineering work for the second polycarbonate train is already completed, paving the way for us to initiate the construction process," said Mark Remmert, LG-DOW President and one of two representative directors for the JV. "We have also appointed a full-time project manager to take us through detailed engineering to a fully operational train."

"Just as LG-DOW's first polycarbonate train helped supply the region's high demand for polycarbonate resins, the planned second train will serve an equally critical role in fulfilling our customers' expectations and sustain our mutual growth," added Mr. DH Jun, Executive Vice President and the other representative director of the JV.

LG-DOW's second polycarbonate train has a
planned nameplate capacity of 65,000 metric tons (143 million pounds), which is designated to supply Korea and other markets in Asia Pacific. Assuming that all milestones are achieved, it could be fully operational in less time than the industry average of two years. This would be made possible in part because critical infrastructure for a second train was included in the construction of the joint venture's first polycarbonate train, which began in July 2001.

The project management team, led by newly appointed project team leader Julian Schoenborn, will be responsible for developing a formal timeline for start-up. He will also be responsible for cost estimations, contractor selection, construction management and future start-up of LG-DOW Train II.

"LG-DOW brings proven polycarbonate technology to Asia, and the benefits associated with global CALIBRE
TM Polycarbonate Resins. With the combined knowledge and experience of two global plastic leaders, LG-DOW is ideally positioned to continue meeting the needs of global customers while leveraging local logistics capabilities to meet 'just-in-time' demands of a diverse customer base," Remmert said.

Polycarbonate resins are high-performance resins offering an exceptional combination of clarity together with heat and impact resistance. Precise control of molecular architecture, a result of Dow's proprietary production process, gives the polycarbonate resins very high ductility and toughness over a wide temperature range. Polycarbonate resins are used in the manufacture of a variety of products, including compact discs, mobile phones, notebook computers, computer monitor housings, water bottles, vehicle headlamps, and construction materials.

About LG DOW Polycarbonate Ltd.
A 50/50 joint venture between The Dow Chemical Company (Dow) and LG Chem, Ltd. LG- DOW is among the largest petrochemical investments in Korea. LG-DOW commenced operations on July 1, 2001, when it started its first 65,000 MTA plant in Yeosu, Korea, assuming the market franchise for CALIBRE Polycarbonate resins from The Dow Chemical Company. The primary business of LG-DOW is the manufacture and supply of CALIBRE Polycarbonate resins to customers in Asia Pacific.

LG DOW Polycarbonate Ltd. continues to effectively serve customers, and satisfy growing needs in the Asia Pacific engineering plastics market by matching the strengths of global plastics leaders, Dow and LG. For further information on LG-DOW, visit

2005/9/28 LG Chem

LG Chem Plans to Commercialize Portable Fuel Cell

LG Chem, Ltd., the largest chemical company in Korea, announced today that it has completed its development of portable fuel cells and plans to commercialize the product within this year. Methanol fuel will be used to power the fuel cells.

The durability of LG Chem's fuel cells lasts for more than 4,000 hours, which is 8 times longer than products developed by its competitors.

LG Chem's portable fuel cells are a micro miniaturized product, which is less than 1 liter in the core volume and weighs less than 1 kg. It's easy to carry and can be used to power laptops and other electronic equipment through long periods of time by exchanging cartridges that contain methanol fuel.

1 fuel cell cartridge (200cc capacity) can power a 25W laptop for more than 10 hours.

LG Chem's newly developed fuel cell system produces 25W of power, which is the world's largest power output among its kind. In particular, power hungry devices such as PMP (Portable Multimedia Player); DMB (Digital Multimedia Broadcasting) phones and laptops can be powered by using a USB port.

As the power demand for electronic devices such as laptops and cell phones increases, LG Chem plans to further develop various fuel cells which can generate power ranging from 5W to 50W. The company expects to apply the 50W fuel cell to high performance laptops and electronic components; moreover, it hopes to broaden its usage to other devices.

"Developing a fuel cell which has a long durability and reliability is a great opportunity for LG Chem to outpace its competitors and gain a strong presence in the global market," said Jong-Kee Yeo, President and CTO of LG Chem.

"Once the global codes and standards for portable fuel cells are prepared within the end of this year, the company will soon start commercialization by meeting growing demands in areas such as laptops and cell phones. Moreover, it will be applied in areas such as portable electronic devices for the military" the CTO added.

In addition, the global demand for portable fuel cells in 2006 is estimated to reach USD 600 million. The market is expected to reach USD 1.9 billion with a high growth rate of 28.3%/yr by 2010.

Editor's Note
Overview of LG Chem
  LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high value added plastics and high performance industrial materials. It also extends its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.
Fuel Cell
  Fuel cell is a mechanism, which transform chemical energy such as hydrogen and methanol into electric energy. Unlike batteries, which require recharging, fuel cells can continuously produce electricity under the condition that fuel is constantly supplied. It is also environment friendly and is considered the next generation of energy.
Development Trend of Portable Fuel Cell
  A portable fuel cell can be largely classified into methanol fuel cell and a hydrogen macromolecule fuel cell that requires a miniature reformer.

The hydrogen macromolecule fuel is not adequate to be applied on mobile IT devices since it requires a macro reformer or a hydrogen storage container to generate power. On the other hand, the DMFC (Direct Methanol Fuel Cell) can contain higher levels of energy and uses less dangerous methanol to generate power; therefore, the DMFC is widely being developed over the hydrogen macromolecule fuel cell.

LG Chem developed the DMFC.
Direct Methanol Fuel Cell
  Methanol fuel cells generate electric power by mixing methanol with air (oxygen); therefore, it does not require a macro reformer. It's also much more portable than hydrogen macromolecule fuel cells. Moreover, methanol fuel cells are less dangerous than hydrogen macromolecule fuel cells as it generates power under 100°C.

In addition, methanol fuel cells contain 4,759 Wh/L of energy density, which is much higher than the energy density of rechargeable batteries (450 Wh/L).

Global Market for Portable Fuel Cell
  * Source: Fuel Cells for Portable Power, Darnell for US Fuel Cell Council, 2003

2005/10/4 LG Chem

LG Chem Launches HI-MACS Manufacturing Facility in U.S.A.
http://www.lgchem.com/press/releases/releases_view.jsp?idx=132 10.04.2005

LG Chem, Ltd., the largest chemical company in Korea, announced today that it will open its first U.S manufacturing facility, LG Chem Industrial Materials Inc. (LG CIM), in Gordon County, Georgia. LG Chem will commemorate the grand opening of the facility on 3rd October 2005.

The new facility will produce LG HI-MACS, which is an
artificial acrylic solid surface, mainly applied to bathroom and kitchen counter tops.

The company invested a total of USD 40 million into the facility. The specification of the HI-MACS, which LG CIM will start to produce, is 760mm(width) x 3680mm(length) and the thickness will range from 6mm to 12mm. The annual production capacity will be 300,000 sheets.

Georgia was strategically selected as the most suitable location due to its stable supply of raw materials, low labor cost, and fast delivery. Other advantageous are logistics, and reduction in import tax. Furthermore, the enthusiasm and support from the State of Georgia was one of the major attractions for the investment.

"Not only will the project hold a great significance for our company but also it will be beneficial to the State of Georgia as well. This is truly a win-win situation," said President and CEO of LG Chem, No Ki-Ho, during his commemoration speech on 3rd October 2005.

"This marks a great significance for LG Chem as it will be the first manufacturing facility in the North America," added the CEO.

Overall, the global markets size for acrylic solid surface in 2004 was KRW 1.2 trillion. Out of the total global market size, LG Chem's market share was 14% and the company plans to increase its market share to 20% by 2008.

LG Chem will be the first chemical company in Korea to launch a manufacturing facility in North America.

Editor's Note
Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high value added plastics and high performance industrial materials. It also extends its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials.

Platts 2006/9/6

S Korea's LG may scrap 80,000 mt/year PVC line in efficiency move

South Korea's LG Chem has been considering scrapping an 80,000 mt/year polyvinyl chloride line in the company's Yeosu complex during November or December this year in an effort to improve production efficiency, a company source said Wednesday.
The company will make a final decision by the end of October. But the source said he was "99% certain" that the company will scrap the line. "It will be more efficient to scrap the line and run [the rest of] the plant at the full capacity," the company source said. If the move goes forward, LG's PVC production capacity at Yeosu would be slashed to 470,000 mt/year.
PVC producers have been suffering from negative margins amid high ethylene feedstock prices as they have not been able to pass on cost pressure to their PVC products amid intensifying competition with carbide-based PVC.
The carbide-based PVC prices are typically Yuan 200-300/mt lower than ethylene-based PVC.

2006/9/8 Asia Puls

LG Chem expands production facilities in China

LG Chem Ltd., South Korea's largest producer of chemicals, has increased its production facilities for two chemicals products in China, a move designed to tap the quickly expanding Chinese market, the company said Friday.

LG Chem held a ceremony Thursday in its factory in Ningbo, China's southeastern coastal province of Zhejiang, to mark the addition of facilities there to produce
150,000 tons of acrylonitrile butadiene styrene (ABS) annually, it said.

The addition catapulted LG Chem's ABS production capacity to the world's largest level of 1 million tons, comprising 450,000 tons from its Chinese unit, Ningbo LG-Yongxing Chemical Co., Ltd., and 550,000 tons from its South Korean factory in Yeosu, 455 kilometers southwest of Seoul.
ABS is thermoplastic used to produce a number of products such as electric devices, electronics goods and auto body parts.

"China's annual ABS demand amounts to 3.1 million tons and this is expected to expand over 8 percent every year," the company said in a statement. "We look forward to tapping the Chinese market further, since about 60 percent of ABS consumed in the market is imported."

LG Chem is the global leader in ABS production with a 15-percent market share.

On the same day, LG Chem also launched operations at
Ningbo LG-Yongxing Latex Co., next to the ABS factory, to produce 70,000 tons of styrene-butadiene latex (SBL) annually. SBL is a synthetic plastic in liquid form that is widely used in paper coating and as a textile adhesive.

LG Chem's SBL production capacity rose to a combined 150,000 tons, including
80,000 tons from its Yeosu factory, the company said.

LG Chem has been operating a holding company in China since last year as it aims to become one of the top five chemical manufacturers on the Chinese mainland by 2008. The holding company supervises the operations of its 10 manufacturing facilities and over a dozen offices in China. In 2008, LG Chem is targeting US$4.5 billion in sales from China.

British Plastics & Rubber October 30, 2006

LG bids for supremacy in polypropylene

LG International is to start selling polypropylene in Britain as its new plant in Oman comes on stream. The company will
take 250,000 - 300,000 tonnes per year of the 340,000 tonnes capacity of the Oman Polypropylene plant - a 20:80 joint venture between LGI and the Oman Oil company - and plans to sell 100,000 tonnes of this into European markets. Its target is to sell 20,000 tonnes of homopolymer in the UK within two years at 'competitive prices' and to become the largest stockist of PP homopolymer in the country.
LG's Luban material is made to a Novolen gas-phase technology licence from Novolen Technology Holdings, a joint venture company owned 80 per cent by ABB and 20 per cent by Equistar. Initial grades will be for the injection moulding, BOPP (fibre), extrusion, thermoforming and film sectors. Products will be offered in a range of melt flow indices to suit specific applications including household appliances, furniture, closures, thin-walled packaging, tape yarns, monofilaments, strapping, non-woven spunbonded, OPP and cast films.
All the materials will be held in stock in the UK ready for delivery within 48 hours in bulk loads or 1
25 tonne pallet lots of 25 kg bags. Europe-wide technical support is already in place.

Platts 2006/11/15

S Korea's LG Petrochemical to become propylene exporter in 2007

South Korea's LG Petrochemical is set to become a net exporter of propylene from 2007, following the completion of its olefins conversion unit at Yeosu in September this year, company sources said Tuesday. The OCU is able to produce 80,000 mt/year of propylene.
LGPC imported 50,000-60,000 mt of propylene in 2006. From 2007, it plans to sell about 30,000mt of propylene through term contracts and in the spot market. Its term contracts will be based on spot prices published by Platts (FOB Korea) and ICIS (CFR Northeast Asia). Other price formula details would differ from contract to contract.

May.31,2007 english.chosun.com 

LG Opens LCD Cluster in Poland

LG has established a bridgehead in Poland to further advance into the European market, with a one-stop manufacturing cluster for LCD components and televisions that opened on Wednesday.

Key components for the cluster in Poland will come from Korea. LG plans to assemble and produce LCD components and finished TV sets at the cluster for distribution in Europe, the world's largest LCD TV market.

LG held a dedication ceremony for the LG Poland LCD Cluster near the city of Wroclaw in the southern part of the Central European country.

Four LG Group affiliate facilities are operating in the cluster -- LG Electronics' finished TV set assembly line, LG.Phillips' LCD module assembly plant, LG Chem's polarizer plant and LG Innotek's inverter and power module manufacturing plant.

The W500 billion (US$1=W931), 1.5 million-sq.m cluster is LG's third largest manufacturing base after the Paju Display Cluster measuring 4.4 million sq.m and the Nanjing Display Cluster measuring 2.04 million sq.m. LG plans to produce 2.4 million LCD units annually at the Poland site.

"With demand for LCD TVs expected to increase rapidly in the European region, the Poland cluster will play a key role in LG's entering Europe," Koo Bon-moo, chairman and CEO of LG Group, said before the ceremony.

LG chose the site in Poland since the Wroclaw area is a nexus of transportation links, including highways and air routes. That makes Poland an ideal launching pad for entry into Europe.

This year Europeans are expected to buy 27 million LCD TVs, or 37 percent of the global LCD TV market. LG considers Poland an attractive market with a population of more than 38 million and US$13,000 in consuming power per capita.

LG Electronics also opened a side-by-side refrigerator assembly plant with an annual capacity of 300,000 units in Poland. The company aims to take on Western home-appliance makers like Bosch, Electrolux and Whirlpool.

At the end of this year, LG Electronics plans to add an air-conditioner assembly line in the Poland cluster and develop it into a base for supplying high-end home appliances in Europe.

LG.Phillips LCD plans to supply LCD modules produced in the Poland cluster to global TV makers located in Eastern Europe. Several LCD TV makers have assembly plants in the region, including a Phillips plant in Hungary, Panasonic and Tatung plants in the Czech Republic, and a TCL-Thomson Electronics plant in Poland.

The Poland cluster will help LG quickly supply LCD modules to the European market and offer more services to local customers, such as technology solutions.

Japan's Toshiba, which holds a 19.9 percent stake in the Poland subsidiary of LG.Phillips LCD, is now building an LCD TV plant in the area which should begin operating in August. Toshiba is expected to become a major buyer from LG.

Nam Yong, vice chairman and CEO of LG Electronics, said, "By connecting the Poland cluster with the Paju cluster in Korea and the Nanjing cluster in China, we are going to enhance our competitiveness through collaboration and division of labor."

Jul 05, 2007  Thomson Financial via COMTEX

SKorea's LG Chemical to merge with LG Petrochemical to boost synergy

South Korea's largest chemical company LG Chemical Ltd said Thursday its board has approved a plan to merge with LG Petrochemical Co Ltd in a move aimed at boosting operational synergies between the two.
"The two companies agreed to merge in a bid to actively respond to changes in the business environment domestically and overseas, to boost efficiency and maximize synergies and to grow into a global petrochemical company," LG Chemical said in a regulatory filing.
The merger will also boost LG Chemical's bargaining power for purchasing raw materials as well as lowering its debt ratio.
LG Chemical already holds
40 percent of LG Petrochemical as of end-2006.
LG Petrochemical shareholders will receive 0.48 LG Chemical share for every LG Petrochemical share, with the merged entity scheduled to be launched in November, the company said.
Following the merger, LG Chemical said it will have an annual ethylene production capacity of 1.66 million tons, placing it as the second largest domestic producer and fifth in the Asian region.
At 11:58 am, LG Chemical was down 1,300 won or 1.48 percent at 86,700 won, while LG Petrochemical was up 600 won or 1.45 percent at 41,950 won.

2009/3/11 トステム 


住生活グループのトステム株式会社(本社:東京都江東区、社長:小川康彦、以下トステム)と韓国LGグループの株式会社LG化学(LG Chem. Ltd.、本社:大韓民国ソウル市、CEO:金磐石[キムバンソク]、以下LG化学)は、韓国ソウル市にアルミ建材および産業用アルミニウム製品の供給拠点となる合弁会社「LG−TOSTEM BM Co., Ltd. (以下LG−TOSTEM)」(設立日:2009年4月予定)を設立することに合意し、本日、新会社設立に関する「合弁会社契約書」を締結しました。


LG 化学は、2009年4月1日に3つの事業分野(石油化学、情報電子素材、産業材)のうち産業材事業部門を分社化し、新しく「LG Hausys(LGハウシス)Co., Ltd(以下LG Hausys)」を設立します(本件は2008年12月発表済み)。「LG−TOSTEM」は、新会社「LG Hausys」の子会社として、アルミ建材、産業用アルミニウム製品などを韓国の市場に供給していきます。


韓国では建物の高層化などにより、近年アルミサッシの需要が高まりつつあります。 そうした中、LG化学は今後の市場を見据えアルミサッシの製造・販売強化を検討しており、一方トステムは、海外販売戦略の一環として、韓国市場でのパートナーを求めていました。そこで両社の思いが一致し検討した結果、合弁会社設立の運びとなりました。


LGグループの中核会社であるLG化学と、日本のアルミサッシ市場でシェアNo.1のトステムは、この新会社設立により、2012年に1,200億ウォン(120億円)の売上を目指します ※為替レート 1ウォン=0.1円で計算






(2)LG化学の産業材事業部門を分社化し「LG Hausys」を設立(2009年4月1日)

LG化学の産業材事業部門を分社化し「LG Hausys」を設立(2009年4月1日)

(3)「LG Hausys」の子会社として「LG−TOSTEM」の事業開始時(2009年4月以降)

「LG Hausys」の子会社として「LG−TOSTEM」の事業開始時(2009年4月以降)


会社名:LG−TOSTEM BM Co., Ltd.(4月設立時の社名予定)
設 立:2009年4月(予定)
出資比率:LG化学 51%、トステム 49%