LG CHEM decided to transfer equipment from its plants in Gyeongbuk Gimcheon and Jeollanam-do Naju to other regional plants to enhance the efficiency of its petrochemical business. This move aims to improve profitability by organizing the equipment of underperforming plants.
On Dec. 12, LG CHEM announced that it will transfer production equipment for super absorbent polymer (SAP) from its Gyeongbuk Gimcheon plant to its Yeosu plant. LG CHEM plans to consolidate SAP production at the Yeosu plant, which has an annual capacity of 410,000 tons.
The Gimcheon plant was acquired by LG CHEM in 2008 from Kolon for 90 billion won and has a production capacity of 90,000 tons. SAP refers to a white powder synthetic resin used in diapers for infants and adults, feminine products, and waterproofing agents for wires.
The styrene acrylate latex (SAL) production facility with an annual capacity of 20,000 tons at the Naju plant will also be transferred to the Chungnam Daesan plant. SAL is a key raw material for industrial and construction adhesives and coatings.
LG CHEM plans to transfer the facility to the Daesan plant and expects to operate it following trial runs in the second half of the year. LG CHEM anticipates reducing transportation costs and enhancing efficiency through equipment consolidation.
An LG CHEM official said, "We are continuously pushing to streamline our petrochemical operations," and noted, "Employees at the relevant plants are expected to be reassigned."