By Kim Yoo-chul
LG Chem, Korea’s largest chemical firm, plans to make a record investment this year as it sees an upturn in its business.
The firm said Tuesday it will invest a total of 2.55 trillion won to increase the output of its petrochemical products as well as LCD glasses, batteries and films used for 3D televisions.
That is an increase of 10 percent from a year ago.
It has set 24.55 trillion won as the revenue target this year, up 8.2 percent from 2011, it said in a statement.
Out of the 2.55 trillion won in investments, 1.75 trillion won will be spent on building new facilities, while the remainder is set for administrative-related affairs, company spokesman Sung Hwan-doo said.
“The 700 billion won is earmarked for the petrochemical business, while materials and battery businesses will get 540 billion won and 470 billion won respectively,” according to Sung.
LG Chem expects its bottom line to strengthen in the first quarter of this year thanks to lowering inventories and the rising price of petrochemical products.
Sung said the demand for its high-end lithium-batteries is also increasing.
The company has over 10 customers to which it is supplying or will supply lithium-ion polymer car batteries, including GM, Ford Motor, Volvo, Renault and Hyundai Motor.
LG Group Chairman Koo Bon-moo recently named former LG Display CEO Kwon Young-soo to handle LG’s battery business. Kwon significantly helped to lift LG Display to be the world’s biggest flat-screen manufacturer.
In the statement, LG Chem said it achieved 22.68 trillion won in total revenue last year, while the combined operating profit for 2011 was 2.84 trillion won, both record highs.
For the fourth quarter, the company generated 5.6 trillion won and 500 billion won in revenue and operating profit respectively. “Slower demand for digital devices had a negative impact on our fourth quarter profit,” Sung said.
The fourth quarter operating profit decreased 10 percent from the same period the previous year. Net profit amounted to 380 billion won, down 12.7 percent during the same period.