LG Chemical Plans to Build ABS Chemical Plant in South China

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Researched by Industrial Info Resources (Sugar Land, Texas). Information has been leaked from a high-ranking source of LG Chemical (Seoul, South Korea), the leading chemical company in South Korea and the largest ABS manufacturer in China, that it plans to build an ABS (acrylonitrile-butadiene-styrene) chemical factory with local enterprises in South China.

The same source also released information that LG Chemical is currently conducting the feasibility study of this project and is expected to make the final decision by the end of this year. Meanwhile, LG Chemical is also considering starting a PVC (polyvinyl chloride) project together with Chinese local companies.

LG Chemical already has an ABS plant in Ningbo City, Zhejiang Province, South China. In September 2006, LG Chemical expanded this plant’s production capacity from the previous 300,000 tons to 450,000 tons by investing $ 90 million, thus LG Chemical’s ABS annual production capacity, including both that at home and abroad, totaling at one million tons, ranking the first in the world.

According to information from LG Chemical, China’s annual consumption demand for ABS amounts to 3.1 million tons with an average annual growth rate of 8%. In contrast with this huge and increasing demand, China’s domestic ABS production capacity lags far behind. At present, more than 60% of China’s consumption of ABS is dependent on imports.

Apart from the ABS plant, LG Chemical also has an SBL plant in Ningbo City with a production capacity of 70,000 tons per year. SBL is the material used for film and fiber cohesive production.

LG Chemical was established in 1947 as the first chemical company in South Korea. After over half a century's development, LG Chemical has become a leading chemical company in South Korea in terms of both size and performance. LG Chemical's business is comprised of three major areas: chemicals and polymers, industrial materials, and information & electronic materials. Its annual sales averaged at around $5.8 billion for the past several years and it employs a workforce of 10,000 people globally. LG Chemical now has branches in China, the U.S. and Russia.

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