LG to expand R&D centre, develop technologies for elastomers, EP, SAP, SSBR

LG-to-expandLG’s Basic Materials & Chemicals R&D Center will upgrade its business structure and develop technologies for elastomer, engineering plastics (EP), super absorbent polymer (SAP) and solution styrene butadiene rubber (SSBR). Additionally, the centre plans to expand the customer range globally.

These are in line with LG Chem’s goal of leading the market in the basic materials, batteries, IT and biotechnology industries. LG Chem will improve its business model, strengthen R&D and be a pioneer in bio-industry. Its ultimate goal is to become one of the top five chemical corporations in the world by 2025.

The company has already acquired the necessary technology and production lines necessary to achieve its plans of increasing the production of elastomer, which has characteristics of rubber and plastics, from 90,000 tonnes to 290,000 by 2018, to become one of the world’s top three producers.

The company is also trying to maximise profit by building more production facilities for acrylonitrile butadiene styrene (ABS). The new ABS factory in Guangdong Province, China, will increase the global market share from 21% to 26%, firmly establishing LG’s position as the top producer in the world. Also, it will expand the production of EP for cars from 30% to 50% by 2020. For SSBR, the company will increase the ratio of eco-friendly tyres from 10% to 40% by 2020.

LG will bolster its SAP business and become one of the top four producers globally by 2020. One gram (0.03 ounces) of SAP can absorb up to 500g of water, which makes it a perfect material to make diapers. Furthermore, it will develop new materials such as CNT and Aerogel.

The Battery R&D Center will maintain its competitiveness in price, performance and safety, especially in winning contracts for 3rd generation electronic cars. It will also target the Energy Storage System (ESS) battery market with upgraded performance and cost competitiveness.

IT&E Materials R&D Center will raise profit from the existing business categories, such as polarising plates and 3-D FPR. On the other hand, it will enter new businesses like wastewater engineering and functional films. Also, LG has been managing an aggressive business strategy for polarising plates. Its annual growth rate reached more than 30%, and new factories were built in China.

Last June, the centre signed a large scale supply contract in Oman for wastewater processing. It built a second line of factories in Cheongju, North Chungcheong, and has entered the water filter market.

Advanced Materials R&D Center will promote its existing display and energy materials, such as OLED and battery materials. It will also focus on establishing its original technologies to lead the future market.

Life Sciences R&D Center will target its core business including drugs for metabolic diseases, biopharmaceuticals and vaccines. Specifically, the centre will promote Zemiglo, the first diabetic drug developed in Korea. It will also become the leading distributor of diabetes, hypertension and hyperlipemia drugs, both in domestic and international markets.