By Kim Yoo-chul
LG Chem said Tuesday that it plans to invest a record 2.12 trillion won on manufacturing facilities this year, up 2.2 percent from a year ago.
The nation’s biggest chemical firm is aiming for 24.86 trillion won in revenue, up 6.9 percent from last year, it said in a statement.
Its information and electronic materials division will receive the biggest portion of the investment budget at 740 billion won, followed by its petrochemical unit with 550 billion won.
The firm’s project in Kazakhstan to build a petrochemical complex will continue as scheduled this year. The firm plans to invest 716 billion won in the complex, which is scheduled to go online in 2016.
LG Chem will expand its annual capacity for synthetic rubbers to continue its market leadership and find new clients by capitalizing on emerging markets.
The information and electronic materials division will put more focus on boosting films for use in three-dimensional (3D) flat screens, LCD glasses and OLED lighting, while its battery division will have more authority to drive its rechargeable batteries for use in electric vehicles.
LG Chem will sign a contract with another automaker soon, helping it increase the number of battery-buying clients to over 10.
The company expects a mild recovery in its bottom line in the first three months of the year.
``There won’t be a fast profit recovery in the first quarter. We are seeing a gradual recovery helped by more demand for petrochemical products in China and LG believes the petrochemical market is approaching a supply and demand balance from a previous mismatch,’’ it said.
LG Chem reported 23.26 trillion won in revenue last year, up 2.6 percent from a year earlier. It posted operating profit of 1.91 trillion won and net profit of 1.5 trillion won, down 32.2 percent and 30.6 percent respectively.
``We don’t think last year’s performance was too bad as LG was successful in securing its bottom line considering lackluster demand for petrochemical products and rechargeable batteries amid economic uncertainties,’’ said the company.