LG Chem is reviewing a business overhaul, including an equity sale, for its bisphenol A (BPA) division, a commodity petrochemical product.
On the 8th, the industry said LG Chem is conducting due diligence with Kukdo Chemical and Samil PricewaterhouseCoopers at its Daesan plant in South Chungcheong for strategic collaboration related to the BPA division. LG Chem is said to be reviewing a plan to sell part of the BPA division's equity to establish a joint venture (JV).
BPA is a commodity petrochemical product used as a key raw material for high-performance engineering plastics such as polycarbonate (PC) and epoxy resins. LG Chem produces 165,000 tons a year of BPA at the Daesan plant. Kukdo Chemical uses it as a raw material to make products.
Beyond the BPA business, LG Chem is also winding down noncore, low-margin operations in some commodity product lines in phases. In the fourth quarter last year, it sold four subsidiaries, including the China aesthetics business and Farmhannong's Thailand unit. Recently, after a disruption in naphtha supply, it halted operations at Yeosu Plant 2.