LG Chem, South Korea’s largest chemical manufacturer, would invest 10 trillion won ($8.7 billion) through 2025 to expand its existing green business portfolio. In particular, LG Chem would allocate the funds to its handpicked three new ESG-based sustainable growth engines.
During an online press conference, LG Chem shared its plans to drastically reorganize its business processes, from strategies to investments, to advance its sustainable growth based on ESG (environmental, social, and governance) standards.
At present, LG Chem is actively reviewing more than 30 mergers & acquisitions and joint ventures. The chemical company’s announcement also coincides with South Korea’s eco-friendly business efforts and nationwide shift towards greener practices.
“This is by far the most revolutionary change the company is making since its establishment, which will further upgrade value and sustainability,” said LG Chem CEO Shin Hak-Cheol. The CEO also forecasted that the initiative would bear tangible results during this year’s second half.
Moreover, Shin noted that LG Chem is no longer a traditional petrochemical company thanks to the technologies and solutions it gathered over the years. The CEO also said that LG Chem is now a materials science company, aiming to revolve its growth around sustainability.
Furthermore, the three selected business fields include eco-friendly materials, e-mobility, and innovative drugs. In the eco-friendly materials field, LG Chem would invest 3 trillion won in employing renewable energy, manufacturing biomaterials, and recycling.
The chemical company would also transform its principal petrochemical business into a biomaterials production system, producing plant-based and renewable products. In the same vein, LG Chem recently established the world’s first-ever plastic resource circulation system in collaboration with Innerbottle.
Besides becoming a sustainable petrochemical manufacturer, LG Chem aims to become one of the world’s leading comprehensive battery material companies. To this end, it would invest 6 trillion won in the e-mobility field, boosting its battery material production.
According to the company, the current 39-million battery materials industry could grow to 100 trillion won by 2026. As a result, LG Chem would establish a cathode production plant with a 60,000-ton annual capacity, meeting increasing market demands.
Under the 10-trillion won investment, LG Chem would allocate 1 trillion won to its innovative drugs and life science-related ventures. The company also plans to widen its clinical-stage product pipeline, including new drugs for cancer, diabetes, and immune-related diseases.
As part of its goal to become a new global drug company, LG Chem would actively promote its presence in the US and European markets. LG Chem also aims to develop more drug innovations and strengthen its clinical capacity and expertise.
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