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| Seen is LG Chem's naphtha cracking center (NCC) plant in Yeosu, South Jeolla Province. / Courtesy of LG Chem |
LG Chem is aiming to become one of the top five global chemical firms by boosting its research and development into future growth engines for its core business, the company said Wednesday.
The chemical and battery making affiliate of LG Group enhanced its reputation in 2018 as the firm was named one of the world's top 10 chemical companies globally in a ranking by the U.S.-based Chemical & Engineering News (C&EN) magazine, published by the American Chemical Society.
This was the first time for a Korean chemical firm to be listed in the top 10. With the reputation the firm has accumulated, LG Chem said it aims to earn a spot in the global top five by 2025.
"For 2019, we have set a sales goal of 32 trillion won ($28.5 billion), a 13.5 percent increase year-on-year. By advancing our business structure and investing more in research and development, we are aiming to become one of the top five global chemical firms by 2025," the firm said.
To achieve sustainable growth, the firm invested more than 1 trillion won ($891 million) in R&D in 2018 and will continue to increase the investment by 10 percent every year.
To create an advanced business structure, LG Chem said it will focus more on high value products in basic materials and chemicals, and accelerate its business capabilities in products with high potential.
"We especially plan to keep investing in high value products such as acrylonitrile butadiene styrene (ABS) and poly olefin, which are technology-based core products," the firm said.
LG Chem invested $100 million in its ABS plant in Guangdong, China, to expand production capacity by 150,000 tons per year. ABS is widely used in IT products and vehicles. The expansion is part of the firm's move to solidify its lead in ABS production ― the company now has production capacity of 2 million tons.
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| LG Chem employees at a battery manufacturing plant in Ochang, North Chungcheong Province, inspect the quality of battery cells. / Courtesy of LG Chem |
In the battery sector, LG Chem is trying to strengthen its status in the industry by investing more in R&D.
The firm said it will actively seek to win more contracts for so-called "third generation electric vehicles," which can run more than 500 kilometers on a single charge. It also plans to expand its battery production capacity to 100 gigawatt hours (GWh) by 2020.
