Industry News

LG Chemical to Split into Three Units

Published on 2002-03-27. Author : SpecialChem

The shareholders of Seoul, Korea-based LG Chemical have ratified a plan to break the company down into three distinct operations effective April 1, 2001.

In a printed statement, the company said that LG Chemical's shareholders held an extraordinary general meeting Thursday morning and approved the plan.

Greater than 90%% of the votes cast favored the plan to divide the company into three units.

LG Group, the parent company is a horizontally integrated conglomerate that manufactures everything from cell phones to petrochemicals. The chemical unit is a vertically integrated operation producing a full line of industrial chemical products such as VCM and other basic petrochemical materials & intermediates, PVC, PE, styrene compound resins, advanced engineering plastics, organic and specialty chemical products, industrial and building materials, floor and wall coverings, and automotive components.

LG Chemical will be split into: LG Chem Investment Ltd., LG Chem Ltd. and LG Household & Healthcare Ltd.

LG Chem Ltd. includes the company's petrochemical and industrial materials operations, while LG Household & Health Care Ltd. will include the company's household products businesses. LG Chem Investment Ltd. Is tasked as an incubator for the development of future strategic businesses and will include the company's life sciences business.

Shareholders are to receive 0.18 share of LG Chem Investment Ltd., 0.66 share of LG Chem Ltd. and 0.16 share of LG Household & Health Care Ltd. for every LG Chemical share they hold.

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