LG Chem, expands its PVC capacity
at Tianjin to 340,000 ton/year
LG Chem, Ltd., the largest chemical company in Korea, announced
today that it has raised its PVC capacity at its Tianjin LG Dagu
Chemical facility by 100,000 ton/year. A dedication ceremony took
place on the 25th of July in Tianjin City, China.
PVC (Poly Vinyl Chloride) is one of LG Chem's core petrochemical
products used in producing a wide range of plastic products
related to the building and construction sector as well as high
voltage electric cables, medical gloves, etc.
With the 100,000 ton expansion, Tianjin LG Dagu Chemical now has
a total PVC capacity of 340,000 ton/year. This is the 3rd
expansion LG Chem has made at its LG Dagu facility, which
initially started out with a PVC capacity of 100,000 ton/year.
"The Chinese market has a potential of further expansions in
PVC since its PVC supply is much lower than demand. LG Dagu's
expansion is in line with such circumstances," said Churl-Ho
Yoo, the Executive Vice President of LG Chem's Petrochemical
Business.
"For further growth in its PVC business, LG Chem has set
long term plans to increase its annual PVC capacity to 2.05
million tons (Korea 0.95 mil, China 1.1 mil) by 2010," Yoo
added. This is expected to elevate the company's position to the
3rd largest PVC producer in the global market.
LG Chem is now the 6th largest PVC producer in the world with a
total capacity of 1.13 million tons per year. (Korea 0.79 mil,
China 0.34 mil)
OVERVIEW OF LG CHEM
LG Chem, Ltd., is the leading chemical company in Korea in terms
of both size and performance. It is a vertically integrated
chemical company that manufactures a wide range of products from
petrochemical goods to high-value added plastics, floorings and
automotive parts. It also expands its chemical expertise to
high-tech materials for electronics and information technology
such as state-of-the-art rechargeable batteries and display
materials.
With annual sales of KRW 5.4 trillion (Yr 2002) and a global
workforce of approximately 10,000 employees, LG Chem plans to
realize positive progress towards sustainable growth by
consolidating its leadership in the domestic market and building
leader businesses outside of Korea.
Facts on LG DAGU
TIANJIN LG DAGU CHEMICAL CO. LTD. (www.lgdagu.com.cn)
Location | Tianjin, China |
Establishment | 1998. 5. |
Capital/ Ownership | US$ 37.4million / 75%(LG group 85%) |
Capacity | 100,000 ton/year ('98.4) 150,000 ton/year ('99.10) 240,000 ton/year ('01.10) 340,000 ton/year ('03.7) |
PVC Demand/Supply in China
2002 |
2005 |
2010 |
Remarks |
|
Demand |
5,200 |
6,670 |
10,300 |
*LG Chem's expansion plans are excluded |
Supply |
3,333 |
4,690 |
4,690* |
|
Shortage |
1,867 |
1,980 |
5,610 |
World Top10 PVC producers -----------------(Unit: 1000 ton)
Rank |
Company |
Capacity |
Nationality |
Remarks |
1 |
Shintech |
3,108 |
Japan, U.S. |
*Shin-etsu + Rovin |
2 |
FPC |
2,826 |
Taiwan, U.S. |
*FPC(Taiwan) 1.4 mil ton |
3 |
Oxy Vinyls |
2,000 |
U.S. |
*OxyChem + Geon |
4 |
EVC |
1,405 |
EU |
. |
5 |
Georgia |
1,305 |
U.S. |
. |
6 |
LG Chem |
1,130 |
S. Korea |
. |
7 |
Solvin |
1,112 |
EU |
*Solvay+BASF |
8 |
AtoFina |
850 |
France |
. |
9 |
Vinnolit |
685 |
EU |
. |
10 |
Westlake |
635 |
U.S. |
. |
Source: CMAI report/LG Chem (2003)
LG Chem marks an
epoch in the Non-phosgene Polycarbonate Process
LG Chem, Ltd., the largest chemical company in Korea, announced
today that it has independently developed a new Non-phosgene
Polycarbonate Process using its own technology. With the
development of this new 'Condensed Non-phosgene Polycarbonate
Process', LG Chem has marked an epoch in the non-phosgene
polycarbonate process.
Polycarbonate is an engineering plastic widely used in optical
discs (CDs and DVDs), automotive and electrical applications,
housing components, industrial equipments and computers. This
diversity in usage comes from its unique properties of high
strength, heat resistance and excellent dimensional and color
stability.
The non-phosgene polycarbonate process is known to be an
environmentally friendly method compared to the conventional
interfacial polycarbonate preparation process, which uses
phosgene gas. This phosgene-free process lowers the production
cost by eliminating the need for extra care of the phosgene gas.
"Compared with the conventional phosgene process, the newly
developed process is likely to reduce investment costs by 70%.
For instance, the investment for a plant with a capacity of
60,000 metric ton per year can be significantly reduced to less
than USD 100 million from USD 250 million," said Jong-Kee
Yeo, the CTO and president of LG Chem. There
is also the added benefit of lower production costs by reducing
the plant operating cost.
Only a few companies, worldwide, have succeeded in developing the
environmentally friendly non-phosgene polycarbonate process. LG
Chem's Condensed Non-phosgene Polycarbonate Process has been
taken a step further by solving the problems of product quality
and long production time that other non-phosgene polycarbonate
processes have.
"The new process developed by LG Chem can reduce the total
production time by more than half and has enhanced the quality of
the resin itself in terms of transparency and color,"the CTO
added.
The Condensed Non-phosgene Polycarbonate Process is a result of
perseverance and countless hours invested in its development
since 1997. In addition, it is the outcome of LG Chem's
decade-long effort to develop environment-friendly processes
along with the Non-phosgene MDI (Methylene Diphenyl
Diiocyanate) process developed in 1995. The Condensed
Non-phosgene Polycarbonate Process is currently patent pending in
9 countries such as the U.S., Japan and Germany.
LG Chem is likely to see great benefit by exporting its highly
advanced non-phosgene MDI technology as well as its newly
developed non-phosgene polycarbonate technology. Furthermore, the
company said that it would also consider of forming a joint
venture with a foreign partner to pave the way towards overseas
expansion.
OVERVIEW OF LG CHEM
LG Chem, Ltd., is the leading chemical company in Korea in terms
of both size and performance. It is a vertically integrated
chemical company that manufactures a wide range of products from
petrochemical goods to high-value added plastics, floorings and
automotive parts. It also expands its chemical expertise to
high-tech materials for electronics and information technology
such as state-of-the-art rechargeable batteries and display
materials.
With annual sales of KRW 5.4 trillion (Yr 2002) and a global
workforce of approximately 10,000 employees, LG Chem plans to
realize positive progress towards sustainable growth by
consolidating its leadership in the domestic market and building
leader businesses outside of Korea.
Overview of the Polycarbonate market
Polycarbonate resins offer an exceptional combination of clarity
along with heat and impact resistance and also have very high
ductility and toughness over a wide temperature range. In the
1980’s, the demand for polycarbonate resins
increased very rapidly. In the year 2000, world polycarbonate
resin capacity reached 2.2 million metric tons. In East Asia, an
estimate of the average annual consumption between 2001 and 2005
is expected to be the fastest growing, averaging 12.5%.
Phosgene / Non-phosgene Polycarbonate process
There are two conventional polycarbonate processes: the
interfacial polymerization process and the melt
polymerization/solid-state polymerization process.
1) | Interfacial polymerization process (phosgene process) |
The interfacial polymerization is carried out in a solution of bisphenol-A (BPA) and phosgene at the interface. Although this process can easily produce high molecular weight polycarbonate resins, it has disadvantages such as the safety problem of handling highly toxic phosgene and the large investment cost of dealing with the environmental problems created by the process. | |
2) | Melt polymerization and Solid-state polymerization process(non-phosgene process) |
The melt
polymerization involves the reaction of diphenyl
carbonate (DPC) with bisphenol-A (BPA) to produce a low
molecular weight polycarbonate prepolymer at the melt
state. High molecular weight polycarbonate is synthesized
at the solid-state polymerization step.High temperature
and high vacuum equipments are required to handle highly
viscous reactants, which lowers the quality of the resin in the melt polymerization step. Long production time is required at the solid-state polymerization process. |
|
LG Chem's Condensed Non-phosgene Polycarbonate process | |
LG Chem's Condensed Non-phosgene Polycarbonate Process cut the production time of polycarbonate in half compared to other non-phosgene processes. The melt-polymerization process of trans-esterification between DPC and BPA is designed to reduce the production time with excellent prepolymer quality. Polycarbonate prepolymer is further crystallized and polymerized to form polycarbonate in the solid-state polymerization process by adopting a newly designed single reactor. | |
Overview of MDI
(Methylene Diphenyl Diiocyanate)
MDI is a raw material for Polyurethane. Pure MDI is used for
casting elastomers and spandex fiber, thermoplastic elastomers.
Polymeric MDI is mostly used for insulating and automotive
materials. The global market size for MDI in the year 2000 was
2.4 million metric ton. Annual production of MDI in Korea is
130,000 metric ton.
The process for MDI production generally involves the use of
phosgene, a toxic substance.
However, in 1995, LG Chem succeeded in developing an
environmentally friendly and cost effective process that
eliminates the use of phosgene. This newly developed process was
introduced in the 'PEP Review', a research booklet published by
Stanford Research Institute (SRI), with 11 domestic and 3
international patents.
2004-1-22 Asia Chemical Weekly
S Korea LG International in Russian ethylene, refining jv
LG International Corp (LGI), the foreign investment arm of South
Korea's LG Group, said that has it formed a joint venture, the
Tatar-Korean Petrochemical Co (TKNK), with partners in Russia to
construct a refinery and petrochemical complex in Nizhnekamsk,
Republic of Tatarstan, Russian Federation.
The complex will produce 600 000 tonne/year of ethylene and have the capacity to refine 7m tonne/year of
oil, LGI said. It will also
include plants for the production and refinement of polymers, the
company said.
It did not provide further details on the financial or technical
details of the project. LGI said that it would continue to work
on this project and any other progress made on the business would
be announced as soon as possible.
The first meeting of the board of TKNK was held on 16 January and
full cash details on the project are still under development.
However, LGI confirmed that TKNK is seeking a $600m (Euro476.7m)
credit from a consortium of western banks to fund the first stage
of the refinery's construction.
Tatneft JSC owns 45.45% of the new company, while
Nizhnekamskneftekhim Inc has a 36.37% stake.
Svyazinvestneftekhim, an Ignatov & Co Group company that
holds shares in both Tatneft and Nizhnekamskneftekhim, and LGI both hold 9% stakes.
Platts 2004/6/30
LG expects Tatarstan oil/petchem project financing by year-end
South Korea's LG group expects to settle a financing plan by
December for a joint venture oil refinery and
petrochemicals project in
the republic of Tatarstan, sources at LG said Wednesday. A source
from LG's construction and engineering subsidiary said the
project's final scope and investment requirements would not be
finalized until the end of the year.
LG had signed preliminary agreements late last year with Russian
oil firm Tatneft, the Tatarstan government, and local refiner
Nignekamskneftekhim, according to local press reports. The
wordlscale refinery should be up and running in two years, the LG
source said, without offering a timetable for the petrochemicals
stage.
LG clinches $3bn Russian deal
http://edition.cnn.com/2004/BUSINESS/09/21/russia.lg.reut/
South Korea's LG International
Corp. and affiliate LG Construction Co. have clinched a $3
billion petrochemical plant deal with Russian oil firm Tatneft, LG
International said Wednesday.
The deal, which LG said was the biggest of its kind in Russia,
was struck during South Korean President Roh Moo-hyun's visit to
Moscow for talks with Kremlin chief Vladimir Putin.
The two leaders have been discussing energy issues, along with
North Korea and its nuclear plans.
The plant would have a daily refining capacity of 150,000 barrels
of oil and produce polyethylene and other petrochemical products,
LG International said in a statement.
Construction was scheduled to begin in 2005, it said.
Shares in LG International jumped 5.64 percent to 9,370 won
Wednesday morning, outperforming a 0.11 percent decline in the
broader benchmark stock index, after the deal was announced.
The deal followed an agreement on Monday between South Korea's
state-run Korea National Oil Corp. (KNOC) and Kazakhstan's state
oil firm KazMunaiGas on an upstream oil project in the oil-rich
Caspian Sea. Roh stopped by Astana en route to Russia.
South Korea, the world's fourth-biggest oil buyer, imports all of
its crude oil and natural gas needs, and is keen to diversify oil
and gas supplies away from the oil-rich but volatile Middle East
to others including Russia and Kazakhstan.
2004/9/22 Platts
Tatarstan sign $1.7-bil petchem, refinery deal.
Tatarstan-Korean Petrochemical Co and South Korean LG have signed a $1.7-bil agreement to construct a refinery in Tatarstan. The agreement was signed in the presence of Russian president Vladimir Putin and South Korean president Roh Moo-Hyun in Moscow. The project is expected to be expanded to include a petrochemical complex pushing the total project cost to $3-bil. The first stage of the project proposes construction of a 7-mil mt/yr (140,000 b/d) refinery to handle heavy, high sulfur oil produced in Tatarstan and Bashkortostan and is to start at the end of the year. The second stage, at a cost of $1.2-bil, envisages a 600,000mt/yr ethylene unit. The Tatarstan-Korean Petrochemical Co was set up in January by Tatneft (45.45%), Nizhnekamskneftekhim(36.37%), Tatarstan authorities (9.09%) and South Korea's LG International (9.09%).
2004.09.23 LG International
LG International-LG E&C won a $3 billion project from
Tatarstan
http://www.lgicorp.com/eng/about/press_v.jsp?num=66¤t_page=1&gubun=D
■ Signed a $ 1.7 billion
contract for a phase I project and agreed on a 1.3 billion phase
II project, to build a petrochemical and oil refining complex.
■ The largest ever, paved
the way for entering the Russian plant market in the future.
LG International Corp., together with LG Engineering
&Construction, won a $ 3 billion project to build a
petrochemical and oil refining complex in Tatarstan. The project
is the largest ever in the history of Korea-Russia relations.
In the Moscow Kremlin on September 21, 2004, LG International
Corp. and the Republic of Tatarstan agreed to build a
petrochemical and refining complex through the two-stage project
worth $ 3 billion in total. Attended by presidents from Korea and
Russia, LG International Corp and the Tatarstan government signed
a $ 1.74 billion agreement for the construction of oil processing
facilities through the phase I project.
This $ 3 billion project is designed to build the petrochemical
and oil refining complex during the phase 1 and phase 2($1.3
billion) in the eastern area, about 1000 km away from Moscow in
Russia.
The project of TKNK(Tatarstan Korea Neftekhim), a joint venture
is the largest construction of petrochemical facilities in the
history of Russia. LG International and LG E&C participated
in the joint venture. LG International will finance the project
while LG E&C will carry out the designing, procurement and
construction (EPC turnkey) for the project.
The construction will be funded through project financing for the
first time since the financial crisis hit Russia. After the
construction and testing for about 4 years and 4 months from
2005, the complex will be operated in full swing.
After the completion of the project, Tatarstan will be capable of
refining150,000 barrels per day and producing petrochemical
products such as polyethylene and EPS. Accordingly, Tatarstan
will have the consolidated production facilities in refinery and
petrochemistry, which build a foundation for transforming its
industrial structure into high value added one.
LG International Corp. seized an opportunity to win the $
3billion plant construction project by participating in the
establishment of the joint venture, TKNK(Tatarstan Korea
Petrochemical Co) with Tatneft, NizheKamskNeftKim and
Svyazinvestmentholding Co., in a close cooperation with its
Moscow branch that gathered the related information at an early
stage. LG International will be responsible for project
financing, which is the largest contributor to wining the
project, and product marketing. In this way, it will oversee the
overall project execution.
Early this year, LG International won a contract for the
construction of a polypropylene plant in Oman using its joint
venture strategy for building a plant and securing the rights to
product sale. Using this creative strategy once again, LG
International Corp won the contract from Tatarstan. Accordingly,
it strengthens its reputation as a leading project organizer.
In 1997, with a 700 million petrochemical plant construction in
Qatar, the largest project at that time, LG International Corp.
and LG E&C started to enter the Middle East market in
earnest. In addition to the project to build the petrochemical
and refinery complex in Tatarstan, they are also preparing for
other projects. Thus, two companies show strong confidence in
making inroads into the Russian market, the largest oil producer.
For the project, financial assistance for feasibility study was
given by the Korea Plant Industries Association under the
sponsorship of the Ministry of Commerce, Industry and Energy.
With the help of the government’s strong support measure for export,
massive investment was made in the initial development stage and
it led to the successful singing of the contract for the project.
Platts 2004/2/12
Korea's LG Chem short lists three sites in China for EDC project
LG Chem, South Korea's largest chemical producer, has short
listed Tianjin(天津),
Guangdong(広東省), and
central China as three likely locations for a planned worldscale
EDC plant, a company official said Thursday.
The capacity of the plant was not disclosed, but sources close to
the company said it would be on the order of 300,000 mt/yr and the project
would entail an investment of $250-300 mil. Work on the unit is
expected to start in 2005. News of the site selection follows an
announcement last summer that LG Chem had opted not to build the
plant in Australia as originally planned because of high labor
costs and overheads.
2004/2/19 LG Chem
LG Chem develops new EP material applying nanotechnology
http://www.lgchem.com/press/releases/releases_view.jsp?idx=106
LG Chem, Ltd., the largest
chemical company in Korea, announced today that it has
successfully developed a new high barrier EP material named
HYPERIER® by applying
nanotechnology.
EP (Engineering Plastics) Engineering Plastics are high
performing plastics that are used as alternatives for metal
hardware. They are highly durable to heat and impact, which makes
it ideal for automobiles and electronic appliances components by
enabling them to be more lightweight and portable.
HYPERIER®, is unique in
terms of its high barrier capability of solvents, water, and gas,
which are important factors when used for automobile fuel tanks
and containers for food, cosmetics, pesticide, and so on.
The shortcomings of existing barrier materials lie in requiring
multi-layers due to low molding ability and weakness in water.
Moreover, high costs are unavoidable because of the expensive
Multi-layer molding equipments and high error rates.
However, by applying nanotechnology to its new EP material, LG
Chem has dramatically increased the barrier ability. Furthermore,
its single layer molding capability provides cost effectiveness
to processing companies by saving equipment and raw material
costs.
"The development of HYPERIER is the result of perseverance
and countless hours invested in its development since 2001. The
success has great significance in that it is the world's first
high barrier EP with the application of nanotechnology and that
it is based on our own technology" said Jong-Man Oh, the
Vice President of LG Chem's Engineering Plastics division.
LG Chem will soon commercialize its new EP material for cosmetic
containers in the 1H of 2004. Moreover, co-research projects with
car makers are currently in progress to apply HYPERIER®
for automobile fuel tanks in order
to secure the global KRWon 1 trillion/ year market.
"We will exert efforts to provide total solutions from the
designing stage to the processing techniques and material
developments. Our target is to become the No. 1 company in
barrier materials by securing 30% of the global market by
2008," Oh added.
Patents related to the company's new nanotechnology based EP
barrier material are currently patent pending in China, Europe,
Japan, Korea, U.S. Taiwan, etc.
HYPERIER® is a compound
word of HYPER and BARRIER. By using nano size barrier particles,
the permeation of solvents, water, and gas is dramatically
reduced. Moreover, due to its high processing capability,
HYPERIER® can be used for
containers of various products.
2004/7/14 LG Chem
LG Chem becomes a global NPG producer through expansion
http://www.lgchem.com/press/releases/releases_view.jsp?idx=110
LG Chem, Ltd., the largest
chemical company in Korea, announced today that it would expand
its NPG (Neopentyl Glycol) capacity by 20,000 tonne to 50,000
tonne/year by 2005. Such an increase will position the company as
the No.3 global producer and the No.1 producer in Asia.
NPG is the raw material for alkyd resin, unsaturated resin and
powder resin. Such resins are used in paints for construction
materials, electronic appliances, automobiles. Moreover, it is
well known as an environment-friendly product.
Due to its high processability, water resistancy, and weather
resistancy, the global demand for NPG has dramatically increased
to a market size of KRW 600 billion. An estimated annual growth
of 6% is expected. However, the high technology required for the
production has been acting as a major obstacle in entering the
market.
LG Chem first entered the NPG business in 1998 by becoming the
world's 4th company to develop its own NPG production technology.
"The development of our own technology was the result of
perseverance and countless hours invested in its development
since 1995," said SangYoun Lee, the General Manager of LG
Chem's Acrylate & E-Chemicals' planning department.
For the NPG expansion of 20,000 tonne/year, a capital injection
of KRW 20 billion will be made at its facility located at Yeosu,
Korea. In addition, a new technology, with advanced reaction
efficiency and yield rate by 30% and an energy saving rate of
50%, will be applied for the expansion.
"We have made a breakthrough by dramatically improving our
technology. The capacity expansion with the application of our
new technology is expected to provide an increase in export by
more than USD 30 million," Lee added.
Korea currently has a NPG market of KRW 30 billion, where LG Chem
is the sole producer. Moreover, the NPG market in China is
forecasted to increase from its current KRW 150 billion to KRW
300 billion by 2008.
"Though advanced technology and enhanced capacity, we are
planning to initiate aggressive marketing and solidify our
position in the global market. As for our goal by 2006, we are
aiming to capture a 15% global market share and a 25% market
share in China," the General Manager said.
NPG Production Process
Global NPG Producers
Rank | Company | Capacity (1,000 tonne) |
Ratio |
1 |
BASF |
135 |
36% |
2 |
Eastman |
87 |
23% |
3 |
MGC |
35 |
9% |
4 |
LG Chem |
30 |
8% |
- |
Others |
89 |
24% |
Total |
376 |
100% |
2005/7/27 LG Chem
LG Chem to Expand Acrylic Acid Plant in Yeosu
LG Chem, Ltd., the largest chemical company in Korea, announced
its plans to add a fourth acrylic acid plant in Yeosu by the end
of 2007. The new plant will produce 80,000 mt/yr of
crude acrylic acid.
Through the new investment, LG Chem will have a total of 4
acrylic acid plants with a total production capacity of 240,000 mt/yr.
Acrylic acid, which is the raw material for acrylates, is a
monomer widely used in over 3,000 products such as SAP (Super
Absorbent Polymer), coating, adhesives, etc.
The existing three plants are situated in Naju and Yeosu. In
these plants, the company uses Japan's Nippon Shokubai
technology. However, LG Chem developed its own oxidation catalyst
in 1998 and the catalyst has been applied ever since.
The new investment is particularly noteworthy, as LG Chem will be
using
its own developed production technology. LG Chem's new process is an
enhanced technology that improves the production efficiency and
stability through a new reaction system and innovative
purification technique.
Other than LG Chem, only three major chemical companies such as
Nippon Shokubai Co. Ltd., BASF and Mitsubishi Chemical Corp. have
their own technology to produce acrylic acid.
The main reason behind the expansion is to meet the growing
demand in China. The company expects that the demand in China
will maintain an average growth of 13% per year throughout the
end of 2010. Another reason is that the company plans to maintain
its position as the leader of acrylates in the Korean and Asian
market.
The global market for acrylates is increasing at 4% annually
whereas the Korean market is steadily growing at over 5% per
year. In the Korean market, the automobile and ship building
industry has been the driving force for the increase in demand
for acrylates.
"As the new plant will adopt the most advanced process and
technology, it will reinforce the competitiveness of the acrylate
business of LG Chem," said Jeong O Kim, Vice President of
the Acrylates Division.
The company expects to generate annual sales of KRWon 110 billion
from the new plant. In addition, the company is currently
studying the possibilities of establishing another 160,000 mt/yr
acrylic acid plant in China to build a leading position in the
fast growing market.
Overall, LG Chem has decided to nurture the acrylate business as
one of the company's strategic products.
Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms
of both size and performance. It is a vertically integrated
chemical company that manufactures a wide range of products from
petrochemical goods to high value added plastics and high
performance industrial materials. It also extends its chemical
expertise to high-tech materials for electronics and information
technology such as state-of-the-art rechargeable batteries and
display materials.
2004 Acrylic Acid Producers in terms of capacity Unit: KMT
Rank | Company | Capacity | License |
1 |
BASF (Germany) |
750 |
Own Technology |
2 |
R&H (U.S.A) |
575 |
Japan |
3 |
DOW (U.S.A) |
516 |
Japan |
4 |
NSCL (Japan) |
450 |
Own Technology |
7 |
LG Chem (Korea) |
160 |
Japan |
* LG
Chem’s new plant will apply its own
technology.
Acrylic Acid Supply and Demand Unit: KMT
Category | 2004 | 2008 | 2010 | CAGR ('04~'10) |
|||
Capa | Demand | Capa | Demand | Capa | Demand | ||
Global |
3,617 |
3,333 |
4,351 |
3,834 |
4,491 |
4,143 |
4% |
China |
165 |
463 |
645 |
745 |
645 |
937 |
13% |
Korea |
160 |
130 |
160 |
151 |
160 |
180 |
5% |
* Source: Tecnon (2004), LG Chem
LG Chem Develops New
Production Method for LCD Color Filters
http://www.lgchem.com/press/releases/releases_view.jsp?idx=130
LG Chem, Ltd., the
largest chemical company in Korea, announced today that it
developed its own production method to produce color filters, a
key component for LCDs. Also the new development is a departure
from the previous 'photolithography
method'.
A color filter is a key component, which sharpens the color of
LCDs. It also accounts for 20% of the manufacturing cost of the
LCDs.
The new production method enables LG Chem to simplify the
manufacturing process and saves manufacturing cost and time by
reducing its production stages from 16 to 3 steps.
The new process is an 'Ink Jet Printing Process' which prints ink on the surface
of the LCD glass plate. It is a process that can be described as
printing paper on an ink jet color printer.
The 'Ink Jet Printing Process' is considered as a 'Holy Grail'
process for color filter manufacturing. LCD panel companies have
been craving to develop this process to compete against the PDP (プラズマディスプレイ) manufacturers in price. In
addition, LCD equipment manufacturers have also been longing to
develop this process.
LG Chem was the first in Korea to ever develop this new
production method and it is expected to provide LCD manufacturers
a competitive edge over PDP manufacturers. Currently, LCD TVs are
priced higher than PDPs in the market. This will be an
opportunity to popularize LCD TVs.
Also, with the 'Ink Jet Printing Process', LG Chem will be able
to save more than 50% on its manufacturing cost.
"In the display industry, Korea has been dependent on raw
materials and manufacturing processes from Japan, however, this
new development will make it unnecessary for us to rely on
imports for LCD raw materials and manufacturing process,"
said Jong-Kee Yeo, President and CTO of LG Chem.
"Not only did LG Chem develop its own development method but
also it developed its own technology to produce the raw
materials. This will significantly enhance the domestic LCD
manufacturers to gain more market share in the global
market," the CTO added.
Editor's Note
Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms
of both size and performance. It is a vertically integrated
chemical company that manufactures a wide range of products from
petrochemical goods to high value added plastics and high
performance industrial materials. It also extends its chemical
expertise to high-tech materials for electronics and information
technology such as state-of-the-art rechargeable batteries and
display materials.
Comparison between the previous and new method
The new production method greatly reduces manufacturing cost and
time, making the previous 16 development stages into 3.
LG-DOW Proceeds with
Project for Second Polycarbonate Train
Start-up Will Bring 65,000 Metric Tons to Korea and Broader
Pacific Markets
http://news.dow.com/dow_news/prodbus/2005/20050906a.htm
LG DOW
Polycarbonate Ltd. (LG-DOW),
a 50/50 joint venture between The Dow Chemical Company and LG
Chem, Ltd., today announced the next steps in a plan to build its second
polycarbonate train in Yeosu, Korea.
"Basic engineering work for the second polycarbonate train
is already completed, paving the way for us to initiate the
construction process," said Mark Remmert, LG-DOW President
and one of two representative directors for the JV. "We have
also appointed a full-time project manager to take us through
detailed engineering to a fully operational train."
"Just as LG-DOW's first polycarbonate train helped supply
the region's high demand for polycarbonate resins, the planned
second train will serve an equally critical role in fulfilling
our customers' expectations and sustain our mutual growth,"
added Mr. DH Jun, Executive Vice President and the other
representative director of the JV.
LG-DOW's second polycarbonate train has a planned nameplate
capacity of 65,000 metric tons (143 million pounds), which is
designated to supply Korea and other markets in Asia Pacific.
Assuming that all milestones are achieved, it could be fully
operational in less time than the industry average of two years.
This would be made possible in part because critical
infrastructure for a second train was included in the
construction of the joint venture's first polycarbonate train,
which began in July 2001.
The project management team, led by newly appointed project team
leader Julian Schoenborn, will be responsible for developing a
formal timeline for start-up. He will also be responsible for
cost estimations, contractor selection, construction management
and future start-up of LG-DOW Train II.
"LG-DOW brings proven polycarbonate technology to Asia, and
the benefits associated with global CALIBRETM Polycarbonate Resins. With the
combined knowledge and experience of two global plastic leaders,
LG-DOW is ideally positioned to continue meeting the needs of
global customers while leveraging local logistics capabilities to
meet 'just-in-time' demands of a diverse customer base,"
Remmert said.
Polycarbonate resins are high-performance resins offering an
exceptional combination of clarity together with heat and impact
resistance. Precise control of molecular architecture, a result
of Dow's proprietary production process, gives the polycarbonate
resins very high ductility and toughness over a wide temperature
range. Polycarbonate resins are used in the manufacture of a
variety of products, including compact discs, mobile phones,
notebook computers, computer monitor housings, water bottles,
vehicle headlamps, and construction materials.
About LG DOW Polycarbonate Ltd.
A 50/50 joint venture between The Dow Chemical Company (Dow) and
LG Chem, Ltd. LG- DOW is among the largest petrochemical
investments in Korea. LG-DOW commenced operations on July 1,
2001, when it started its first 65,000 MTA plant in Yeosu, Korea,
assuming the market franchise for CALIBRE Polycarbonate resins
from The Dow Chemical Company. The primary business of LG-DOW is
the manufacture and supply of CALIBRE Polycarbonate resins to
customers in Asia Pacific.
LG DOW Polycarbonate Ltd. continues to effectively serve
customers, and satisfy growing needs in the Asia Pacific
engineering plastics market by matching the strengths of global
plastics leaders, Dow and LG. For further information on LG-DOW,
visit www.lg-dow.com.
2005/9/28 LG Chem
LG Chem Plans to Commercialize Portable Fuel Cell
http://www.lgchem.com/press/releases/releases_view.jsp?idx=131
LG Chem, Ltd., the
largest chemical company in Korea, announced today that it has
completed its development of portable fuel cells and plans to
commercialize the product within this year. Methanol fuel will be used to power the fuel
cells.
The durability of LG Chem's fuel cells lasts for more than 4,000
hours, which is 8 times longer than products developed by its
competitors.
LG Chem's portable fuel cells are a micro miniaturized product,
which is less than 1 liter in the core volume and weighs less
than 1 kg. It's easy to carry and can be used to power laptops
and other electronic equipment through long periods of time by
exchanging cartridges that contain methanol fuel.
1 fuel cell cartridge (200cc capacity) can power a 25W laptop for
more than 10 hours.
LG Chem's newly developed fuel cell system produces 25W of power,
which is the world's largest power output among its kind. In
particular, power hungry devices such as PMP (Portable Multimedia
Player); DMB (Digital Multimedia Broadcasting) phones and laptops
can be powered by using a USB port.
As the power demand for electronic devices such as laptops and
cell phones increases, LG Chem plans to further develop various
fuel cells which can generate power ranging from 5W to 50W. The
company expects to apply the 50W fuel cell to high performance
laptops and electronic components; moreover, it hopes to broaden
its usage to other devices.
"Developing a fuel cell which has a long durability and
reliability is a great opportunity for LG Chem to outpace its
competitors and gain a strong presence in the global
market," said Jong-Kee Yeo, President and CTO of LG Chem.
"Once the global codes and standards for portable fuel cells
are prepared within the end of this year, the company will soon
start commercialization by meeting growing demands in areas such
as laptops and cell phones. Moreover, it will be applied in areas
such as portable electronic devices for the military" the
CTO added.
In addition, the global demand for portable fuel cells in 2006 is
estimated to reach USD 600 million. The market is expected to
reach USD 1.9 billion with a high growth rate of 28.3%/yr by
2010.
Editor's Note | |
Overview of LG Chem | |
LG Chem, Ltd., is the leading chemical company in Korea in terms of both size and performance. It is a vertically integrated chemical company that manufactures a wide range of products from petrochemical goods to high value added plastics and high performance industrial materials. It also extends its chemical expertise to high-tech materials for electronics and information technology such as state-of-the-art rechargeable batteries and display materials. | |
Fuel Cell | |
Fuel cell is a mechanism, which transform chemical energy such as hydrogen and methanol into electric energy. Unlike batteries, which require recharging, fuel cells can continuously produce electricity under the condition that fuel is constantly supplied. It is also environment friendly and is considered the next generation of energy. | |
Development Trend of Portable Fuel Cell | |
A portable fuel
cell can be largely classified into methanol fuel cell
and a hydrogen macromolecule fuel cell that requires a
miniature reformer. The hydrogen macromolecule fuel is not adequate to be applied on mobile IT devices since it requires a macro reformer or a hydrogen storage container to generate power. On the other hand, the DMFC (Direct Methanol Fuel Cell) can contain higher levels of energy and uses less dangerous methanol to generate power; therefore, the DMFC is widely being developed over the hydrogen macromolecule fuel cell. LG Chem developed the DMFC. |
|
Direct Methanol Fuel Cell | |
Methanol fuel
cells generate electric power by mixing methanol with air
(oxygen); therefore, it does not require a macro
reformer. It's also much more portable than hydrogen
macromolecule fuel cells. Moreover, methanol fuel cells
are less dangerous than hydrogen macromolecule fuel cells
as it generates power under 100°C. In addition, methanol fuel cells contain 4,759 Wh/L of energy density, which is much higher than the energy density of rechargeable batteries (450 Wh/L). |
|
Global Market for Portable Fuel Cell | |
* Source: Fuel Cells for Portable Power, Darnell for US Fuel Cell Council, 2003 |
LG Chem Launches HI-MACS
Manufacturing Facility in U.S.A.
http://www.lgchem.com/press/releases/releases_view.jsp?idx=132
10.04.2005
LG Chem, Ltd., the
largest chemical company in Korea, announced today that it will
open its first U.S manufacturing facility, LG Chem Industrial
Materials Inc. (LG
CIM), in Gordon County, Georgia. LG Chem will commemorate the
grand opening of the facility on 3rd October 2005.
The new facility will produce LG HI-MACS, which is an artificial acrylic
solid surface,
mainly applied to bathroom and kitchen counter tops.
The company invested a total of USD 40 million into the facility.
The specification of the HI-MACS, which LG CIM will start to
produce, is 760mm(width) x 3680mm(length) and the thickness will
range from 6mm to 12mm. The annual production capacity will be
300,000 sheets.
Georgia was strategically selected as the most suitable location
due to its stable supply of raw materials, low labor cost, and
fast delivery. Other advantageous are logistics, and reduction in
import tax. Furthermore, the enthusiasm and support from the
State of Georgia was one of the major attractions for the
investment.
"Not only will the project hold a great significance for our
company but also it will be beneficial to the State of Georgia as
well. This is truly a win-win situation," said President and
CEO of LG Chem, No Ki-Ho, during his commemoration speech on 3rd
October 2005.
"This marks a great significance for LG Chem as it will be
the first manufacturing facility in the North America,"
added the CEO.
Overall, the global markets size for acrylic solid surface in
2004 was KRW 1.2 trillion. Out of the total global market size,
LG Chem's market share was 14% and the company plans to increase
its market share to 20% by 2008.
LG Chem will be the first chemical company in Korea to launch a
manufacturing facility in North America.
Editor's Note
Overview of LG Chem
LG Chem, Ltd., is the leading chemical company in Korea in terms
of both size and performance. It is a vertically integrated
chemical company that manufactures a wide range of products from
petrochemical goods to high value added plastics and high
performance industrial materials. It also extends its chemical
expertise to high-tech materials for electronics and information
technology such as state-of-the-art rechargeable batteries and
display materials.
S Korea's LG may scrap 80,000 mt/year PVC line in efficiency move
South Korea's LG Chem has
been considering scrapping an 80,000 mt/year polyvinyl chloride
line in the company's Yeosu complex during November or December
this year in an effort to improve production efficiency, a
company source said Wednesday.
The company will
make a final decision by the end of October. But the source said
he was "99% certain" that the company will scrap the
line. "It will be more efficient to scrap the line and run
[the rest of] the plant at the full capacity," the company
source said. If the move goes forward, LG's PVC production
capacity at Yeosu would be slashed to 470,000 mt/year.
PVC producers have
been suffering from negative margins amid high ethylene feedstock
prices as they have not been able to pass on cost pressure to
their PVC products amid intensifying competition with
carbide-based PVC.
The carbide-based
PVC prices are typically Yuan 200-300/mt lower than
ethylene-based PVC.
2006/9/8 Asia Puls
LG Chem expands production facilities in China
LG Chem Ltd., South Korea's largest producer of chemicals, has
increased its production facilities for two chemicals products in
China, a move designed to tap the quickly expanding Chinese
market, the company said Friday.
LG Chem held a ceremony Thursday in its factory in Ningbo,
China's southeastern coastal province of Zhejiang, to mark the
addition of facilities there to produce 150,000 tons of
acrylonitrile butadiene styrene (ABS) annually, it said.
The addition catapulted LG Chem's ABS production capacity to the
world's largest level of 1 million tons, comprising 450,000 tons
from its Chinese unit, Ningbo LG-Yongxing Chemical Co., Ltd., and
550,000 tons from its South Korean factory in Yeosu, 455
kilometers southwest of Seoul.
(正しくは中国48万トン、韓国56万トンで、計104万トン)
ABS is
thermoplastic used to produce a number of products such as
electric devices, electronics goods and auto body parts.
"China's annual ABS demand amounts to 3.1 million tons and
this is expected to expand over 8 percent every year," the
company said in a statement. "We look forward to tapping the
Chinese market further, since about 60 percent of ABS consumed in
the market is imported."
LG Chem is the global leader in ABS production with a 15-percent
market share.
On the same day, LG Chem also launched operations at Ningbo LG-Yongxing
Latex Co.,
next to the ABS factory, to produce 70,000 tons of
styrene-butadiene latex (SBL) annually. SBL is a synthetic
plastic in liquid form that is widely used in paper coating and
as a textile adhesive.
LG Chem's SBL production capacity rose to a combined 150,000
tons, including 80,000 tons from its Yeosu factory, the company said.
LG Chem has been operating a holding company in China since last
year as it aims to become one of the top five chemical
manufacturers on the Chinese mainland by 2008. The holding
company supervises the operations of its 10 manufacturing
facilities and over a dozen offices in China. In 2008, LG Chem is
targeting US$4.5 billion in sales from China.
British Plastics &
Rubber October 30, 2006
LG bids for supremacy in polypropylene
LG International is to start selling polypropylene in Britain as
its new plant in Oman comes on stream. The company will take 250,000 -
300,000 tonnes per year of the 340,000 tonnes capacity of the Oman Polypropylene
plant -
a 20:80 joint venture between LGI and the Oman Oil company - and
plans to sell 100,000 tonnes of this into European markets. Its
target is to sell 20,000 tonnes of homopolymer in the UK within
two years at 'competitive prices' and to become the largest
stockist of PP homopolymer in the country.
LG's Luban material is made to a Novolen gas-phase technology
licence from Novolen Technology Holdings, a joint venture company
owned 80 per cent by ABB and 20 per cent by Equistar. Initial
grades will be for the injection moulding, BOPP (fibre),
extrusion, thermoforming and film sectors. Products will be
offered in a range of melt flow indices to suit specific
applications including household appliances, furniture, closures,
thin-walled packaging, tape yarns, monofilaments, strapping,
non-woven spunbonded, OPP and cast films.
All the materials will be held in stock in the UK ready for
delivery within 48 hours in bulk loads or 1・25 tonne pallet lots of 25 kg
bags. Europe-wide technical support is already in place.
S Korea's LG Petrochemical to become propylene exporter in 2007
South Korea's LG
Petrochemical is set to become a net exporter of propylene from
2007, following the completion of its olefins conversion unit at
Yeosu in September this year, company sources said Tuesday. The
OCU is able to produce 80,000 mt/year of propylene.
LGPC imported 50,000-60,000 mt of propylene in 2006. From 2007,
it plans to sell about 30,000mt of propylene through term
contracts and in the spot market. Its term contracts will be
based on spot prices published by Platts (FOB Korea) and ICIS
(CFR Northeast Asia). Other price formula details would differ
from contract to contract.
May.31,2007 english.chosun.com
LG Opens LCD Cluster in Poland
LG has established a bridgehead in Poland to further advance into the European market, with a one-stop manufacturing cluster for LCD components and televisions that opened on Wednesday.
Key components for the cluster in Poland will come from Korea. LG plans to assemble and produce LCD components and finished TV sets at the cluster for distribution in Europe, the world's largest LCD TV market.
LG held a dedication ceremony for the LG Poland LCD Cluster near the city of Wroclaw in the southern part of the Central European country.
Four LG Group affiliate facilities are operating in the cluster -- LG Electronics' finished TV set assembly line, LG.Phillips' LCD module assembly plant, LG Chem's polarizer plant and LG Innotek's inverter and power module manufacturing plant.
The W500 billion (US$1=W931), 1.5 million-sq.m cluster is LG's third largest manufacturing base after the Paju Display Cluster measuring 4.4 million sq.m and the Nanjing Display Cluster measuring 2.04 million sq.m. LG plans to produce 2.4 million LCD units annually at the Poland site.
"With demand for LCD TVs expected to increase rapidly in the European region, the Poland cluster will play a key role in LG's entering Europe," Koo Bon-moo, chairman and CEO of LG Group, said before the ceremony.
LG chose the site in Poland since the Wroclaw area is a nexus of transportation links, including highways and air routes. That makes Poland an ideal launching pad for entry into Europe.
This year Europeans are expected to buy 27 million LCD TVs, or 37 percent of the global LCD TV market. LG considers Poland an attractive market with a population of more than 38 million and US$13,000 in consuming power per capita.
LG Electronics also opened a side-by-side refrigerator assembly plant with an annual capacity of 300,000 units in Poland. The company aims to take on Western home-appliance makers like Bosch, Electrolux and Whirlpool.
At the end of this year, LG Electronics plans to add an air-conditioner assembly line in the Poland cluster and develop it into a base for supplying high-end home appliances in Europe.
LG.Phillips LCD plans to supply LCD modules produced in the Poland cluster to global TV makers located in Eastern Europe. Several LCD TV makers have assembly plants in the region, including a Phillips plant in Hungary, Panasonic and Tatung plants in the Czech Republic, and a TCL-Thomson Electronics plant in Poland.
The Poland cluster will help LG quickly supply LCD modules to the European market and offer more services to local customers, such as technology solutions.
Japan's Toshiba, which holds a 19.9 percent stake in the Poland subsidiary of LG.Phillips LCD, is now building an LCD TV plant in the area which should begin operating in August. Toshiba is expected to become a major buyer from LG.
Nam Yong, vice chairman and CEO of LG Electronics, said, "By connecting the Poland cluster with the Paju cluster in Korea and the Nanjing cluster in China, we are going to enhance our competitiveness through collaboration and division of labor."
Jul 05, 2007 Thomson Financial via COMTEX
SKorea's LG
Chemical to merge with LG Petrochemical to boost synergy
South Korea's largest chemical company LG Chemical Ltd said
Thursday its board has approved a plan to merge with LG
Petrochemical Co Ltd in a move aimed at boosting operational
synergies between the two.
"The two companies agreed to merge in a bid to actively
respond to changes in the business environment domestically and
overseas, to boost efficiency and maximize synergies and to grow
into a global petrochemical company," LG Chemical said in a
regulatory filing.
The merger will also boost LG Chemical's bargaining power for
purchasing raw materials as well as lowering its debt ratio.
LG Chemical already holds 40 percent of LG Petrochemical as of end-2006.
LG Petrochemical shareholders will receive 0.48 LG Chemical share
for every LG Petrochemical share, with the merged entity
scheduled to be launched in November, the company said.
Following the merger, LG Chemical said it will have an annual
ethylene production capacity of 1.66 million tons, placing it as
the second largest domestic producer and fifth in the Asian
region.
At 11:58 am, LG Chemical was down 1,300 won or 1.48 percent at
86,700 won, while LG Petrochemical was up 600 won or 1.45 percent
at 41,950 won.
トステムとLG化学が新合弁会社を設立
住生活グループのトステム株式会社(本社:東京都江東区、社長:小川康彦、以下トステム)と韓国LGグループの株式会社LG化学(LG Chem. Ltd.、本社:大韓民国ソウル市、CEO:金磐石[キムバンソク]、以下LG化学)は、韓国ソウル市にアルミ建材および産業用アルミニウム製品の供給拠点となる合弁会社「LG−TOSTEM BM Co., Ltd. ※(以下LG−TOSTEM)」(設立日:2009年4月予定)を設立することに合意し、本日、新会社設立に関する「合弁会社契約書」を締結しました。
「LG−TOSTEM」は、トステムのアルミ建材の製造技術と、LG化学の樹脂サッシ等産業建材の販売力を融合させ、近年建物の高層化など、アルミサッシ需要が高まる韓国における販売拡大を目指します。
LG 化学は、2009年4月1日に3つの事業分野(石油化学、情報電子素材、産業材)のうち産業材事業部門を分社化し、新しく「LG
Hausys(LGハウシス)Co., Ltd(以下LG Hausys)」を設立します(本件は2008年12月発表済み)。「LG−TOSTEM」は、新会社「LG
Hausys」の子会社として、アルミ建材、産業用アルミニウム製品などを韓国の市場に供給していきます。
■「LG−TOSTEM」設立の経緯、目的
韓国では建物の高層化などにより、近年アルミサッシの需要が高まりつつあります。 そうした中、LG化学は今後の市場を見据えアルミサッシの製造・販売強化を検討しており、一方トステムは、海外販売戦略の一環として、韓国市場でのパートナーを求めていました。そこで両社の思いが一致し検討した結果、合弁会社設立の運びとなりました。
■「LG−TOSTEM」今後の展開について
LGグループの中核会社であるLG化学と、日本のアルミサッシ市場でシェアNo.1のトステムは、この新会社設立により、2012年に1,200億ウォン(120億円)※の売上を目指します。 ※為替レート 1ウォン=0.1円で計算
また、新会社のコスト競争力、新商品開発力を活かし、韓国市場だけではなく将来的には海外市場にも展開していきたいと考えております。
■「LG−TOSTEM」の主な取扱い商品について
アルミ建材や産業用アルミニウム製品などの製造・販売を行なっていきます。
<今後の体制について>
(1)トステムとLG化学で合弁会社「LG−TOSTEM」の設立を合意(2009年3月)
(2)LG化学の産業材事業部門を分社化し「LG Hausys」を設立(2009年4月1日)
(3)「LG Hausys」の子会社として「LG−TOSTEM」の事業開始時(2009年4月以降)
【新会社の概要】
会社名:LG−TOSTEM BM Co., Ltd.(4月設立時の社名予定)
所在地:大韓民国ソウル市
設 立:2009年4月(予定)
資本金:60億ウォン
出資比率:LG化学 51%、トステム 49%
従業員数:25名(設立時)
事業内容:アルミ建材および産業用アルミニウム製品の製造、販売