Latest news with #LGChem
Mint
7 days ago
- Automotive
- Mint
What's good for politicians is good for General Motors
General Motors CEO Mary Barra earned $29.5 million last year, and it's hard to argue that she isn't earning her keep. The automaker sold more cars in the U.S. than any other company last year, and its profits have doubled in her 11 years as CEO. Credit her ability to please her most important customers—politicians. Their command is her wish. While doubling down on manufacturing profitable gas guzzlers, Ms. Barra promoted electric vehicles to ingratiate herself to Democrats who want to eliminate the products that churn out profits for her company. She again proved her flexible principles last week by praising President Trump's auto tariffs, which the company estimates will dent its profits by $5 billion this year. 'I think tariffs is one tool that the administration can use to level the playing field," she said. What she omitted is that the playing field has been tilted in GM's favor for decades by a 25% tariff on pickup trucks, which gives domestic automakers an effective monopoly. Also: Mr. Trump's new 25% tariffs on all cars and parts not made in the U.S. will hurt GM, but they will wallop its foreign competitors even more. In 2018 Ms. Barra got a crash course in politicking when she announced a corporate restructuring that involved closing four U.S. plants that produced low-selling sedans. Her goal was to make GM leaner and more profitable. In this she succeeded, but she blundered by not throwing a bone to Mr. Trump, who thinks CEOs answer to him. 'I spoke with her when I heard they were closing and I said, 'You know, this country has done a lot for General Motors,' " he said, adding that he had encouraged Ms. Barra to keep its Lordstown, Ohio, plant open: 'You better get back in there soon." Mr. Trump was right that GM is a willing ward of Washington. In addition to the longstanding 25% pickup tariff, the U.S. government invested some $51 billion in the company as part of its bankruptcy, only about $39 billion of which it recovered. The first Trump administration also went to bat for GM and other automakers by rolling back its predecessor's burdensome fuel-economy standards and revoking a waiver that allowed California to impose costly EV quotas. Ms. Barra no doubt knows that her business is at the mercy of a mercurial government, and better keep the rulers happy. And so she did. In 2019, GM announced plans to create 450 new factory jobs in Ohio, as well as a joint venture with LG Chem to build a $2.3 billion EV battery plant near the closed Lordstown factory. Mr. Trump repaid the favor with the U.S.-Mexico-Canada Agreement, which included wage mandates and domestic content requirements for tariff-free imports from Mexico and Canada that disadvantaged GM's foreign competitors. Ms. Barra attended Mr. Trump's USMCA signing ceremony. After Mr. Trump lost re-election, Ms. Barra began kowtowing to her new master in Washington. GM rapidly did a U-turn on California's EV rules. 'We believe the ambitious electrification goals of the President-elect, California, and General Motors are aligned to address climate change by drastically reducing automobile emissions," Ms. Barra said in November 2020. On Jan. 28, 2021, GM announced plans to go all-electric by 2035, conforming its business plans to California Gov. Gavin Newsom's mandate. That August, Ms. Barra cheered Mr. Biden's plans to rev up fuel-economy standards at a White House event. A few months later, Ms. Barra lent her support to the Democrats' $5 trillion Build Back Better legislation, notwithstanding its costly new entitlements that would be paid for in part with corporate tax hikes. Never mind that Ms. Barra had been just named chairman of the Business Roundtable, which was lobbying against the legislation. Paramount for Ms. Barra was the bill's $12,500 tax credit for EVs built with union labor, which would have put GM's nonunion competitors like Tesla at a disadvantage. Although that bill failed, Ms. Barra continued to advocate for its successor, the Inflation Reduction Act, which included rich subsidies for EVs and battery production. The Biden Energy Department repaid Ms. Barra by awarding GM a $2.5 billion low-interest loan for its battery joint venture with LG. Now that the political tides in Washington have turned, Ms. Barra has too. GM this spring lobbied Congress to reverse the federal waiver for California's EV mandate. 'Shameful what GM did behind our back," Mr. Newsom snapped after the Senate approved the resolution and sent it to Mr. Trump's desk. Last week, GM scrapped a plan to make EV motors at an upstate New York factory. Instead, the company will make high-tech V-8 engines for full-size trucks and SUVs, which Ms. Barra called 'the most significant engine investment we've made in history." Music to Mr. Trump's ears. If it's any consolation to Democrats, Ms. Barra will surely be at their beck and call next time they control Washington. Can you blame her? When government has sweeping power to pick winners and losers, a CEO's responsibility becomes to keep the company's overlords happy so it always comes out a winner.
Korea Herald
09-05-2025
- Business
- Korea Herald
LG Chem backs carbon-neutral drive at Woosung Chemical
LG Chem, Korea's leading chemical company, said Friday it will support carbon reduction efforts at its key partner firm Woosung Chemical as part of a government-led net zero initiative targeting industrial supply chains. LG Chem will help install solar panels on the rooftop of Woosung Chemical's warehouse. The clean energy generated will contribute to reducing the partner company's carbon footprint. This will be carried out as part of the Carbon-Neutral Leading Plant Support Program, led by the Korea Institute of Industrial Technology under the Ministry of Science and ICT, designed to support company groups linked within a supply chain in achieving carbon neutrality. Woosung Chemical, a manufacturer of functional additives for plastics, has collaborated with LG Chem for over a decade through the company's shared-growth energy project, which seeks to enhance low-carbon competitiveness among partners. In addition to this project, LG Chem is broadening support through its voluntary environmental, social and governance support program, which includes assistance in carbon emissions measurement and verification, low-carbon product design and production consulting, and the development of life cycle assessments for products. 'LG Chem will continue to pursue ESG management in collaboration with our partners and take bold steps toward achieving carbon neutrality,' said Ko Yoon-joo, executive director and chief sustainability strategy officer at LG Chem.
Korea Herald
08-05-2025
- Business
- Korea Herald
LG Chem debuts diabetes treatment Zemidapa in Thailand
LG Chem, Korea's leading chemical company, announced Thursday that it has begun the global expansion of its new diabetes combination drug Zemidapa, marking its first export milestone with a launch in Thailand. To kick off the launch, the company hosted the 'Zemi-Connect Global' symposium in Bangkok, attended by over 120 endocrinologists from Korea, Thailand and the Philippines. The event was held alongside the International Diabetes Federation 2025 Congress, where LG Chem was a main sponsor. Zemidapa is a combination therapy that brings together Zemiglo — Korea's first domestically developed DPP-4 inhibitor — and the SGLT-2 inhibitor dapagliflozin. LG Chem prioritized the Thai market due to its direct sales infrastructure and the rapid growth of the local combination drug segment. According to pharmaceutical market research firm IQVIA MIDAS, the total market for the two inhibitors in Thailand is estimated at approximately 250 billion won ($178.7 million), with the combination drug segment growing at an average annual rate of 36 percent over the past three years. The company plans to leverage existing sales networks for Zemiglo and Zemimet, which together hold a 13 percent share of Thailand's DPP-4 segment, to generate business synergy and broaden prescription options. It also aims to enhance academic marketing and expand its local customer network. 'The demand for effective treatments for young-onset diabetes is growing in Thailand,' said Hwang In-cheol, head of LG Chem's primary care business division. 'We expect Zemidapa to meet this need and will expand into ASEAN and Latin American markets including the Philippines, Mexico and Brazil.'
Korea Herald
29-04-2025
- Automotive
- Korea Herald
Seoul shares rise for 3rd day on auto, bio gains; tariff concerns linger
Seoul shares extended their winning streak to a third day Tuesday, led by auto and bio gains, though investors remain cautious about US President Donald Trump's tariff policies. The Korean won also rose against the US dollar. The benchmark Korea Composite Stock Price Index gained 16.56 points, or 0.65 percent, to close at 2,565.42. Trade volume was moderate at 526.42 million shares worth 8.03 trillion won ($5.58 billion), with gainers outnumbering losers 659 to 236. Institutions bought a net 356.65 billion won worth of stocks, while foreigners and individuals sold 235.13 billion won and 166.44 billion won, respectively. Analysts said investors remained watchful ahead of quarterly earnings reports from major global companies, including Apple, Amazon, Samsung Electronics and LG Chem, while continuing to assess the potential impacts from the US tariffs. In Seoul, auto and bio stocks led the gains. Top automaker Hyundai Motor rose 2.01 percent to 192,800 won, and its smaller affiliate Kia climbed 2.14 percent to 90,600 won. Auto shares advanced on reports that Trump may ease tariffs on foreign parts used in vehicles assembled in the United States, to reduce the impact of his automotive trade policies. Major bio firm Samsung Biologics gained 1.35 percent to close at 1,051,000 won and smaller rival Celltrion jumped 3.42 percent to 163,400 won. Leading battery maker LG Energy Solution gained 1.16 percent to 350,000 won, while LG Chem jumped 2.04 percent to 225,500 won. Among decliners, chip giant SK hynix fell 0.66 percent to 180,800 won, and battery maker Samsung SDI shed 0.33 percent to 183,600 won. Shipbuilders also lost ground, with Hanwha Ocean plunging 12.09 percent to 78,500 won and Samsung Heavy Industries shedding 1.19 percent to 14,970 won. The local currency closed at 1,437.30 won against the greenback at 3:30 p.m., up 5.3 won from the previous session. (Yonhap)
Korea Herald
29-04-2025
- Business
- Korea Herald
LG Chem in talks to sell off water solutions unit at W1tr
LG Chem, a leading chemical company under the South Korean tech conglomerate LG Group, has started talks to sell off its water solutions unit to secure cash flow amid the group's drive to streamline its businesses. LG Chem has reportedly selected Glenwood Private Equity as a preferred bidder to acquire its water solutions business, which specializes in manufacturing reverse osmosis membranes, owning the world's second-largest market share in the sector. The RO membranes desalinate seawater, and the recycled water is used for industrial purposes. The unit's valuation is expected to stand at around 1 trillion won ($695 million). In 2024, it posted 250 billion won in revenue, 65 billion won in earnings before interest, taxes, depreciation and amortization, or EBITDA. Glenwood is an alternative investment firm headquartered in Seoul with cumulative assets under management of $3 billion. The PE has developed a close relationship with LG Chem, having acquired its diagnostics business, now renamed Invitros, in 2023. 'Glenwood has made its name here by specializing in corporate carve-out deals,' an official from a local private equity company commented. A carve-out deal refers to a situation where a parent company sells its business unit to an outside investor, making the unit a separate entity. With the acquisition of the water solutions unit, the PE is expected to seek to boost synergy with its portfolio company Techcross Environmental Services. In 2024, Glenwood acquired the ballast water treatment system company, then-named HiEntech from Bubang Group. Before being acquired by Bubang Group, HiEntech was a sewage treatment operation owned by LG Electronics. LG Chem's water solutions unit was expected to be the chemical giant's key growth engine. In 2023, the company decided to invest 125 billion won in the RO membrane plant located in Cheongju, North Chungcheong Province, to double the water treatment business within five years. Industry officials assume LG Chem may be trying to streamline its business and secure liquidity amid a challenging business landscape. Last month, LG Chem Vice Chair and CEO Shin Hak-cheol pledged to accelerate growth in the company's three key sectors: advanced materials, life sciences and sustainability. 'Within the three major growth engines, we will set priorities and enhance competitiveness through strategic selection and focus,' Shin said at the general meeting of shareholders held on March 24. A few days after, LG Group Chairman Koo Kwang-mo shared a message on a similar note, urging the group's top executives to act with a "sense of urgency" and embrace change, similar to its conglomerate peer, SK Group's restructuring drive. "With a sense of urgency, we must break away from past inertia and the misalignment between strategy and execution,' Koo said at the conglomerate's first executive meeting of the year held on March 27. He also emphasized the importance of focus and prioritization, saying, 'The reality is that we cannot do all businesses well, which is why we must focus and prioritize.'
