LG Chem vows to go beyond chemistry

LG Chem CEO Shin Hak-cheol announces the company's new corporate vision during an online ceremony, Thursday. / Courtesy of LG Chem

By Baek Byung-yeul

LG Chem is seeking to make a leap forward under the new slogan “We connect science to life for a better future” in a bid to create new customer value based on “science” beyond “chemistry,” the chemical, battery-making, and biotech affiliate of LG Group said Thursday.

Shin Hak-cheol, CEO of the company, announced the new corporate vision at a proclamation ceremony held online with only 20 executives of the company present.

“Based on the science surrounding us and the science we have accumulated, we have made dreams come true, producing durable lid for cosmetics as well as the world's best battery,” Shin told employees online.

“On the occasion of the Fourth Industrial Revolution era, we have to make an advancement of our business model by incorporating digital technologies such as AI and big data and it is time to create new value that goes beyond the expectations of our customers.”

Established in 1947, LG Chem has a business portfolio that includes petrochemicals, energy, materials and biotechnology. The company said it needed to come up with a new vision to leap forward and become a top 5 global chemical company in 2025.

“As the business environment surrounding the company has changed rapidly, we are urged to innovate our business portfolio that goes beyond chemistry. Our business strategy was centered on the petrochemical sector in the past, but we were able to make a change in the portfolio having four strategic axes ― petrochemicals, energy, advanced materials and life sciences,” an official of the company said.

The Fourth Industrial Revolution, which is based on hyper-connectivity and hyper-intelligence, has pushed LG Chem to make a change one more time, according to the company. “To accomplish our future vision, we have set five core values ― customer focus, agility, collaboration, passion and sustainability.”

Under the new slogan, each division of LG Chem is implementing several actions to make a meaningful change.

Its petrochemical sector has developed eco-friendly plastic products to keep pace with the current sustainability trend, which is working on dropping carbon dioxide emissions and recycling plastic waste.

The battery business is seeking innovation in the e-mobility sector by establishing battery-making joint ventures with global carmakers and conducting more R&D activities.

LG Chem recently rose to the top of the electric vehicle (EV) battery business, edging out Japan's Panasonic in terms of market share, according to market researcher SNE Research. According to the industry tracker, LG Chem had a market share of 27.1 percent among global EV battery suppliers in the first quarter, followed by Panasonic and CATL of China.

The advanced materials business is working on intensifying its competitiveness in anode and cathode materials, essential components for EV batteries. And the life sciences division is concentrating on developing new drugs. Utilizing AI technology, LG Chem is developing cancer vaccine in cooperation with a firm specialized in predicting modification of cancer cells.

LG Chem is also seeking to reform its corporate culture in accordance with the announcement of its new corporate vision.

“Taking advantage of video conferencing, we will strengthen communication with employees in global branches in the United States, Poland, China?and other overseas branches,” the company said.

An industry analyst said LG Chem is considering a name change as the word Chem doesn't represent much of what the company is doing. “The company may change its corporate name to better showcase its future vision,” the source said.