MOSCOW (MRC) -- LG Chem Ltd, South Korea’s largest chemical company, said on Tuesday it will spend USD278.32 MM on expanding its acrylic acid and superabsorbent polymer production capacity by the first half of 2019, as per the company's press release.
The company said in a statement that the investment aims to focus on boosting its higher-value petrochemical business.
The expansion will increase the production capacity of its plants in the southwestern city of Yeosu by 180,000 tpy of crude acrylic acid to 700,000 tpy, and by 100,000 tpy of super absorbent polymer to 500,000 tpy, LG Chem said.
Crude acrylic acid is a feedstock for super absorbent polymer that is typically used to make diapers.
As MRC reported earlier, in January 2016, South Korea's LG Chem said it had decided to drop a plan to jointly build a USD4.2-billion petrochemical complex in Kazakhstan, citing a prolonged slump in oil prices and a sharp increase in facility investments. In 2011, the chemical company said it would construct the complex near the western Kazakh city of Atyrau as part of a 50-50 joint venture with two Kazakh companies. The plan involved building ethylene and polyethylene plants with annual capacities of 840,000 tonnes and 800,000 tonnes, respectively.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC