LG Chem is poised to reinforce its competitiveness through further sophistication of its business structure, a move that is in line with the Korean government’s recent plan to strengthen the competitiveness of the petrochemical industry.
LG Chem, South Korea's top chemicals firm, said on Oct. 16 that it will expand its naphtha cracking center (NCC) to secure raw materials needed for higher value-added products. The company will also convert the production lines of oversupplied polystyrene (PS) into ones for high value-added acrylonitrile butadiene styrene (ABS).
To that end, the company will invest 287 billion won in the Daesan Complex, located in South Chungcheong Province, by 2019 in order to raise ethylene production capacity by 230,000 tons.
Once completed, the Daesan Complex’s ethylene production will increase from the current 1.04 million tons to 1.27 million tons, the largest capacity among NCC plants worldwide. This will push up sales by 400 billion won.
An LG Chem official said, “Once the Yeosu plant’s 1.16-million-ton capacity is combined with the Daesan Complex’s 1.27 million ton capacity, LG Chem will have an annual ethylene production capacity of 2.43 million tons, further cementing its No. 1 position in Korea.”
“To maximize investment efficiency, we will expand our NCC by adding high-efficiency facilities. The expansion of our NCC will be done at half the cost of building a new NCC.”
