Latest news with #ShinHak-cheol
Korea Herald
04-08-2025
- Automotive
- Korea Herald
LG Chem begins construction of Korea's first 'green diesel' plant
LG Chem has begun construction on Korea's first hydrotreated vegetable oil production facility, furthering the company's strategy to bring the supply of eco-friendly raw materials in-house amid rising global demand for sustainable alternatives. The company announced Monday that construction has started on the HVO plant in Seosan, South Chungcheong Province. Once completed in 2027, the facility is expected to produce 300,000 tons of HVO annually. HVO, sometimes called green diesel, is produced by using hydrogen to break down vegetable oils, particularly used cooking oil, into smaller molecules. The concept is similar to biodiesel but the different chemistry of the resulting fuel means it is more stable and performs better at low temperatures. While HVO has around 10 percent lower energy density than petroleum diesel, its proponents claim it can reduce carbon emissions by up to 90 percent. It is used in various applications, including sustainable aviation fuel, car fuel and bio-naphtha — a versatile feedstock in the chemical industry. LG Chem plans to utilize HVO not only for biofuel production but also to expand its eco-friendly plastics business, which it sees as a core driver of future growth. The company aims to convert bio-naphtha into high-performance plastics used in home appliances, automobiles, sporting goods and hygiene products. 'LG Chem is transforming its business portfolio toward low-carbon models, aiming for both sustainable growth and improved profitability,' said LG Chem CEO Shin Hak-cheol. 'We will continue to drive technological innovation and commercialization in eco-friendly fuel and bio-resources, including HVO, to strengthen our global competitiveness and respond proactively to customer demand.' The Seosan facility is being developed through a 50:50 joint venture with Italian energy firm Eni, which currently produces 2 million tons of HVO annually at its facilities in Italy and has an extensive global supply network. An LG Chem official said the new facility will provide the company with more affordable access to bio-based feedstocks for its chemical manufacturing operations, which until now have largely relied on imports from global suppliers. Competition to secure sustainable raw materials is intensifying worldwide, as companies seek to meet growing customer expectations and regulatory requirements. According to Fortune Business Insights, the global HVO market is expected to grow at a compound annual growth rate of around 8.2 percent, expanding from approximately $21.36 billion in 2025 to $36.86 billion by 2032.
Korea Herald
16-06-2025
- Automotive
- Korea Herald
LG Chem, Noritake develop heat-resistant chip adhesive for EVs
LG Chem, a leading chemical company under LG Group, said Monday that it jointly developed a silver paste with Japan's Noritake for use in silicon carbide automotive power semiconductors, specifically for bonding chips to substrates. Noritake, an expert in precision ceramics, supplies materials and equipment to the semiconductor and automotive sectors. Demand for semiconductors capable of handling high voltages and currents is growing with the rise of electric vehicles and autonomous driving technologies. Traditional soldering methods struggle with the high operating temperatures — up to 300 degrees Celsius — associated with these components. The newly developed silver paste incorporates silver nanoparticles and combines LG Chem's formulation and particle design technology with Noritake's dispersion expertise. It is designed to deliver both high heat resistance and effective thermal conductivity. A notable feature of the product is its extended shelf life. It can be stored at room temperature for up to six months, eliminating the need for refrigeration and improving logistics and on-site usability. The two companies plan to continue their partnership to advance adhesive materials for future semiconductor applications. The market for silver paste in automotive power semiconductors is expected to grow to 850 billion won ($623.3 million) by 2030. 'LG Chem has provided customer-tailored solutions across various fields, including automotive electronic components, based on its long-standing technological expertise and material design capabilities,' LG Chem Vice Chairman Shin Hak-cheol stated. 'Through this partnership, we will secure a differentiated competitive edge in the global automotive adhesive market.'
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.'
Korea Herald
24-03-2025
- Business
- Korea Herald
LG Chem CEO unveils strategic focus on R&D, sustainability, biotech
South Korean chemicals giant LG Chem has set its sights on refining its business portfolio around new growth sectors to stay competitive, as it braces for a year clouded with global uncertainty, the company said Monday. At a general meeting of shareholders held Monday in Seoul, Vice Chairman and CEO Shin Hak-cheol pledged to accelerate growth in the company's three key sectors -- advanced materials, life sciences and sustainability -- while enhancing both research and development capabilities and financial resilience. 'Within the three major growth engines, we will set priorities and enhance competitiveness through strategic selection and focus,' Shin said, adding that the plan would position the company against challenges like geopolitical tensions, petrochemical oversupply and sluggish electric vehicle demand that impacted last year's performance. In 2024, LG Chem posted annual revenue of 48.9 trillion won ($33.3 billion), an 11.4 percent drop from the previous year, with operating profit plummeting 63.7 percent on-year to 916 billion won. 'For battery materials, we will focus on delivering unique value to customers through our technology and product offerings,' Shin said. 'In sustainability, we'll target sectors with strong growth potential, while in pharmaceuticals, we aim for qualitative growth of existing projects and will actively pursue new breakthroughs in late-stage oncology treatment.' The company explained it has already made strides in its growth engines by starting production at its cathode material production facility in Gumi, North Gyeongsang Province, and by ramping up North American investments in battery materials. It also established a biofuel joint venture and built a chemical recycling plant under sustainability efforts while advancing its oral obesity drug to US clinical trials in the pharmaceuticals sector. Shin further stressed the company's resolve to sharpen its R&D edge and strengthen its financial backbone. 'We will accelerate the shift to performance-oriented R&D to boost future competitiveness even in harsh circumstances,' Shin said. 'This means reorganizing existing R&D projects and identifying new tasks from a market and customer perspective while enhancing efficiency by optimizing internal resources and speeding up external collaborations.' Another key agenda item was improving cash flow by fortifying the company's fundamental capabilities. 'We will thoroughly analyze all costs from a zero-based perspective, improve internal efficiency and prioritize strategic investments through optimal resource allocation,' Shin added.
