LG Chem said on the 29th that it will use government subsidies for naphtha to support small and midsize customers and strengthen win-win cooperation.
The support will be implemented mainly for customers that manufacture essential daily materials such as vinyl and packaging. LG Chem plans to temporarily cut 100,000 won to 200,000 won per ton (t) for volumes shipped in May–June, considering each product's naphtha usage ratio and product price. The details have been shared with customers.
Through this, LG Chem plans to ease cost burdens for small and midsize customers and help reduce the price burden of everyday materials.
Kim Dong-chun, LG Chem chief executive officer (CEO) and president, said, "This support decision was prepared as part of win-win cooperation for small and midsize customers who continued to use our products based on trust in the quality and supply stability of LG Chem products despite many challenges," and added, "We also express deep gratitude to the government for providing unprecedentedly swift support to domestic petrochemical corporations facing difficulties due to a surge in naphtha supply constraints and prices."