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LG Chem Becomes a Global NPG Producer through Expansion

Published on 2004-08-12. Author : SpecialChem

 

(Seoul, Korea) LG Chem, Ltd., the largest chemical company in Korea, announced 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.

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.

Source: LG Chem


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