2003.07.02 LG Chem

LG Chem signs a deal with Nanjing, China to establish a polarizer plant

LG Chem, Ltd., the largest chemical company in Korea, announced today that LG Chem is setting up a local subsidiary to produce TFT-LCD（thin-film-transistor liquid-crystal-displays） polarizers in Nanjing, China. The signing ceremony between LG Chem and Nanjing City took place today. (TFT液晶ディスプレイ用偏光フィルム in　南京)

A polarizer is a multi-layered optical film used for transmitting light in TFT-LCD modules, which is mainly used in notebook PCs, PC monitors, televisions, etc. To produce TFT-LCD polarizers requires high technology, which, currently, only three Japanese companies and LG Chem possess.

According to the investment contract with Nanjing City, LG Chem will invest a total of USD 15 million until 2004 to establish a polarizer plant with a capacity of 4 million �u. (14 million sets) Moreover, LG Chem is planning to further its investment in China by building another polarizer plant in China by 2006.

"The TFT-LCD polarizer market in China is growing fast as global LCD companies are entering China to benefit from its rapid growth in demand. Moreover, Chinese polarizer companies are also growing in number. Thus, LG Chem has had to move up its schedule for a TFT-LCD polarizer plant in China in order to solidify its foothold in such an environment," said Jong-Pal Kim, the Executive Vice President of LG Chem and Chief of LG Chem's I&EM business.

The size of the Chinese TFT-LCD polarizer market is approximately KRWon 30 billion. However, with the global display makers advancing into China, plus the emergence of Chinese household electric companies, the market is expected to grow ten-fold to a size of KRWon 300 billion by 2006.

"With the establishment of a polarizer plant in China, LG Chem will be able to conduct active marketing to its customers in China and, therefore, secure half of the Chinese market. This will enable the company to position itself as the leading polarizer producer in China," Kim added.

LG Chem, the only TFT-LCD polarizer producer in Korea, currently has a capacity of 3.8 million �u. The company has plans to increase this capacity to 26 million �u by 2006, which will enable LG Chem to become the world No.1 producer by securing a 35% global market share.

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.

Outline of the new Chinese subsidiary

LG Chem (Nanjing) Information & Electronic Materials Co., Ltd.

Global Polarizer Market

Global Polarizer Market size　(Unit : KRWon 100 Million)

Chinese Polarizer Market size　(Unit : KRWon 100 Million)

* Source : DisplaySearch ('03. 1Q), LG Chem

2003/8/7　LG Chem

LG Chem aims KRWon 15 trillion in sales for 2008

LG Chem, Ltd., the largest chemical company in Korea, announced today its new mid-to-long term business strategies and its goals of KRWon 15 trillion in sales and a 13% operating profit rate for 2008.

LG Chem's ambitious mid-to-long term strategy concentrates on strengthening its vertically integrated business structure. For its petrochemical and industrial materials business, LG Chem has plans to consolidate its foothold and position itself as a major player in main growing markets such as China and the U.S. by raising its product quality and cost competitiveness through enhanced R&D and marketing abilities.

For its Information & Electronic Materials business, LG Chem's core future business, the company plans to focus on rapid developments of new high-tech products and increasing capacities for its main products such as rechargeable batteries and display materials.

Furthermore, LG Chem will enter new high value-added business areas by applying IT technologies to its existing businesses. The I&EM business and the new business areas is expected to account for 28% of the company's total business portion by 2008. Currently, the I&EM business takes up 8% of total business.

"With the successful completion of the acquisition of Hyundai Petrochemical and the rapid growth in the Information & Electronic Materials business, we have also raised our mid-term goals, to reach KRWon 10 trillion in sales and a 12% operating profit rate for 2005," said Ki Ho No, the president and CEO of LG Chem.

After its successful spin-off, which took place in 2001, LG Chem had earlier set a mid-term goal of KRWon 8 trillion in sales and KRWon 800 billion in recurring profit.

"By 2008, LG Chem will become the 3rd largest chemical company in the world in terms of earning rates and the 3rd largest in Asia in terms of the sales amount and stock value," No added.

In line with its mid-to-long term strategy, LG Chem has prioritized six products among its wide range of products, which have high possibilities of obtaining a leading position in the world. The six products are ABS (Acrylonitrile Butadiene Styrene), PVC (Polyvinyle Chloride), HI-MACS (Artificial Marble), surface materials such as High Gloss Sheets, polarizers, and rechargeable batteries.

"LG Chem will increase its R&D resources to enhance its competitiveness by providing innovative products and total solutions to its customers and will also strive to become a truly globalized chemical company," said the CEO.


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, 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.

LG Chem's Mid-to-Long Term Goal

2003-8-7 Asia Chemical Weekly

LG Chem to expand Yeochun styrene to 500 kt/yr

LG Chem plans to expand its 375 000 tonne/year styrene plant in Yeochun, South Korea, to 500 000 tonne/year later this year, the company said.

The major currently buys more than 200 000 tonne/year of styrene and the extra styrene would help LG reduce its styrene purchases before it expands its acrylonitrile butadiene styrene (ABS) capacity.

LG plans to boost its ABS capacity to 500 000 tonne/year from 300 000 tonne/year by 2005 in Ningbo, Zhejiang, China.

LG's reliance on styrene purchases would also be reduced after Hyundai Petrochemical's assets, including two styrene plants, are split between LG and Honam Petrochemical.

LG Chem and Honam formed a consortium which successfully acquired Hyundai's petrochemical assets for Won1.74trn ($1.47bn/Euro1.30bn) earlier this year.

朝鮮日報　2003.08.28 

  ＬＧ、ＡＢＳ・デジタルテレビを集中育成へ  

　ＬＧは２８日、プラスチックの一種である高付加合成樹脂ＡＢＳ（ＬＧ化学）とデジタルテレビ（ＬＧ電子）、テレフォンショッピング（ＬＧホームショッピング）を「１等戦略産業」に選定、２００５年まで２兆ウォンを投じ、集中育成することにした。
 
　ＬＧはＡＢＳとデジタルテレビが２００５年に世界トップを達成し、テレフォンショッピングは国内トップを固めた後に世界市場に進出する方針だ。
 
　ＬＧは２８日、京畿（キョンギ）道・利川（イチョン）のＬＧ仁和（インファ）院で、具本茂（ク・ボンム）会長など、グループ系列の最高経営者（ＣＥＯ）５０余人が出席した中、「グローバルＣＥＯ戦略会議」を行い、これら３分野の１等達成に向けた戦略を話し合った。
 
　ＬＧの鄭相国（チョン・サングク）副社長は「グローバルＣＥＯ戦略会議はＬＧグループの最高戦略会議で、次世代成長産業と未来１等事業の具体的な育成案を協議するもの」と説明した。
 
　ＬＧはまず、台湾メーカーとトップ争いを演じるＡＢＳ事業は中国市場での勝負を狙い、中国内の生産拠点を持続的に拡大する計画だ。
 
　ＬＧ化学は昨年末、中国・寧波市の工場の生産規模を年間３０万トンまで増設したのに続き、２００５年まで総額１２００億ウォンを投じ、内外合計１００万トン規模の生産体制を構築する方針だ。
 
　ＬＧ電子はまた、デジタルテレビ分野にのみ向こう２年間１兆８０００億ウォン以上を投資する方針だ。
 
　研究開発に対してのみ８０００億ウォンを投じ、北米・欧州地域のマーケティング費用として６０００億ウォン、地域別の現地生産体制構築に毎年１５００億ウォン以上を投入、次世代テレビと呼ばれるＰＤＰ・ＬＣＤテレビ（壁掛けテレビ）世界トップを達成する計画だ。
 
　この他、テレホンショッピング事業は徹底したＣＲＭ（顧客関係管理）と物流センターの構築によるサービス革新、双方向テレビとモバイルインターネット取引などの新規事業を推進し、現在３８％の市場シェアを４０％以上に拡大し、早ければ年末頃に中国市場への進出を本格化する方針だ。

2003.09.17 　LG Chem

LG Chem develops core materials for Organic EL

LG Chem, Ltd., the largest chemical company in Korea, announced today that it has developed core materials for organic EL (Electro Luminescence) and has set up plans for mass production.

Organic EL (Electro Luminescence) display is a self-emissive type display that uses organic materials formed into thin films and that are driven by electric current to generate light. The display features high brightness levels, quick response, and wide-view angles at a low cost. The High picture quality of organic EL displays is attracting attention as the next generation display.

The organic EL materials that LG Chem developed are the HIL (Hole Injection Layer) and ETL (Electron Transporting Layer), both essential materials for the organic EL's self-emissivity, which enables organic EL's to have high power efficiency, low operating voltage, and an expanded life time.

In particular, by using LG Chem's HIL, it is possible to use low priced aluminum for the anode material where light is transmitted, contributing greatly to simplifying production procedures and improving performance.

The newly developed HIL and ETL gained much interest at the ICEL-4 (International Conference on Electroluminescence of Molecular Materials and Related Phenomena), which was held at Cheju Island last August.

LG Chem's development of the new organic EL material will improve the performance of organic EL devices, giving them an advantage over LCD's in Small Displays found on mobile phones, PDAs, digital cameras, etc.

"Korea is already the global leader in LCDs and second place for organic EL in the field of next generation display, but still relies on competitor nations such as the U.S. and Japan for materials and parts," said Jong-Kee Yeo, the CTO and president of LG Chem.

"The organic EL material development is a remarkable accomplishment, not only in terms of increasing the competitiveness of the device industry in the area of displays, but also in that we can overturn the perception that Korea is lacking in material technology," Yeo added.

Organic EL material is a high value-added product priced at several hundred thousand won per gram and only a handful of advanced companies such as the U.S. Eastman Kodak, and Japan's Idemitsu Kosan produces it.

The organic EL material market is projected to grow at an annual rate of over 60% to 130 billion won in 2005, and 310 billion won in 2008.

LG Chem plans to add HTL (Hole Transporting Layer) and EML (Emitting Layer) to secure the production technology for all organic EL materials by 2004, and will strive to become the top player in the area by securing a market share of over 50% in the global organic EL market by 2005.

The company's facility for the mass production of HIL and ETL will be on-stream in early 2004.


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.

Organic EL Structure


Advantages of OLEDs

1. Superior viewing performance:
・ emissive bright colors, broad color gamut, wide viewing angle, fast response time, high resolution, and high contrast

2. Excellent operating characteristics:
・ low operating voltage, power efficient, and wide temperature range

3. Enabling form factor:
・ Thin, light-weight, rugged, and conformable

4. Low cost:
・ Simple processing, vacuum deposition, inkjet printing, spin coating, roll-to-roll (web) processing

2005/5/25 LG Chem

LG Chem to Establish VCM/EDC Plant in China
http://www.lgchem.com/press/releases/releases_view.jsp?idx=121

LG Chem, Ltd., the largest chemical company in Korea, announced today that it would hold a groundbreaking ceremony for its VCM/EDC plant in Tianjin, China. At the end of last year, LG Chem signed an agreement with Tianjin Bohai Chemical Co., Ltd. to establish a VCM (Vinly Chloride Monomer) and EDC (Ethylene Di-Chloride) plant by the end of 2006.

Nearly all of VCM goes into PVC (Poly Vinyl Chloride), which is used for manufacturing many plastic products in the building and construction sector. EDC is the base chemical of which 95% is used for producing VCM.

With a total investment of USD 300 million, the new facilities strategically located at Lingang Industrial District, Tianjin, China will have capacity of 350,000mt/yr of VCM, 300,000mt/yr of EDC and 240,000mt/yr of Caustic Soda.

The new facilities will be established as a joint venture named 'Tianjin LG Bohai Chemical Co., Ltd.'; the investors are comprised of LG Chem (45%), LG Petrochemical (20%), LG International (10%), LG Dagu (10%), and Tianjin Bohai Chemical Industry Co., Ltd. (15%).

"The establishment of an VCM and EDC facility in China is part of LG Chem's strategy of vertical integration, which should deliver synergy effects to our PVC business in China. Moreover, Tianjin was the perfect match for the establishment," said Churl Ho Yoo, the president of the Chemicals and Polymers Company.

Tianjin was selected as the most suitable location for the company's new VCM and EDC facilities due to its stable supply of electricity and salt, essential elements in producing EDC, and for its proximity to LG Dagu, the company's PVC facility in China. LG Dagu has an annual capacity of 340,000mt/yr and the distance of the new VCM and EDC plant from LG Dagu will only be 10km.

"With the cost savings derived from the enhanced self-sufficiency of raw materials of PVC, we will be able to solidify our foothold in the PVC business in the region," the president added. The strong PVC demand in China, which has been increasing by approximately 10% since 2003, is expected to continue until 2008 amid tight supply.

Overall, the annual PVC demand in China is estimated to be 6,850,000mt while supply is only at 5,190,000mt.

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.

Tianjin LG Bohai Chemical Co., Ltd.

Product Chain after Completion


PVC Supply and Demand (Unit: KMT)

(Source: BCG, Mitsui, LG Chem)

LG Chem 2005/8/17

LG Chem Signs License Partnership With Mitsui Chemicals
http://www.lgchem.com/press/releases/releases_view.jsp?idx=129

LG Chem, Ltd., the largest chemical company in Korea, announced today that the company signed a license partnership agreement with Mitsui Chemicals Inc., for the use of their VCM/EDC technology.

The partnership grants LG Chem with the exclusive rights to sublicense Mitsui's VCM/EDC technology. The partnership will not only be beneficial for LG Chem but also advantageous to Mitsui as well.

The exclusive rights enable LG Chem to develop new clients and further generate additional sales by promoting the technology with a full vinyl chain. LG Chem had already obtained a full vinyl chain technology by applying Mitsui's VCM/EDC technology with its existing PVC technology.

Mitsui stopped their VCM production several years ago and has continued only to sell their technology license. Through the partnership, Mitsui provides their existing licensees with more valuable technical assistances through utilizing the wealth of LG Chem's manufacturing know-how.

More than 20 chemical companies in over 15 countries are currently applying Mitsui's state-of-the-art technology to produce VCM and EDC.

"Mitsui's cutting edge technology was one of the reasons for LG Chem to move forward with the signing of the agreement. The interaction between LG Chem and Mitsui will create a win-win situation for both companies," said Churl Ho Yoo, the President of the Chemicals and Polymers Company.

"Obtaining the rights to sell the license for VCM and EDC will create a synergy effect for LG Chem's PVC business, a leading global product," added Yoo.

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.