LG Chem is hitting the gas to grab attention from global consumers with eco-friendly and future materials.
LG Chem showcased eco-friendly materials, such as biodegradable plastic and recycled plastic, in addition to future materials in the photovoltaic power, medical and battery sectors under the theme “The New LG Chem” at Chinaplas 2023.
The exhibition took place at Shenzhen World Exhibition & Convention Center in Shenzhen, Gwangdong Province, China, over four days from April 17.
LG Chem set up a pavilion with an exhibition area covering 398 sq. meters, the largest among Korean exhibitors, and displayed over 50 strategic products.
In particular, the company operated seven conference rooms and a business lounge to facilitate communication with global customers.
On display at the “Sustainability Solution & LETZero” zone were poly butylene adipate-co-terephthalate (PBAT), drawing attention as a future eco-friendly product, ply lactic acid (PLA), made with 100 percent bio materials, and post-consumer recycled (PCR). PBAT biodegrades six months after it is buried in soil.
In an effort to ramp up its presence in global markets, LG Chem exhibited polyolefin elastomer (POE), a future, value-added, strategic item photovoltaic power panel film material, carbon nanotube (CNT), a global top-quality battery material based on its own technology, and nitrile butadiene latex, a material for medical gloves.
Spectators were given the chance to experience “LG Chem On,” a digital integrated purchase platform developed by LG Chem.
LG Chem is the first company of the Korean petrochemical industry to develop the platform, which is designed to look at developments ranging from order to transportation as if they do on online shopping malls.
Noh Guk-rae, chief of the Petrochemical Business Division at LG Chem, said, “LG Chem, pursuing endless changes and innovation, will attract the hearts of global customers with eco-friendly and future materials.”
LG Chem Posts 14.49 Trillion in Q1 Revenue, 24.9% Jump YoY
LG Chem announced on April 27 that the company recorded consolidated revenue of 14.49 trillion won and operating profit of 791 billion won in the first quarter.
Although the revenue grew by 24.9 percent YoY, the company’s operating profit decreased by 22.8 percent.
Excluding LG Energy Solution, LG Chem posted revenue of 7.53 trillion won and an operating profit of 141 billion won.
In relation to its quarterly performance, LG Chem has announced that it achieved “higher revenue and profitability on a quarter-on-quarter basis across all of its businesses, despite the global economic downturn.”
The company further stated that “although there’s uncertainty in the business environment extending into 2Q, the company anticipates a gradual increase in demand for the Petrochemicals Company, as well as a strong growth trajectory for both the Advanced Materials Company and Energy Solution.”
The petrochemicals company recorded a revenue of 4.58 trillion won and an operating loss of 50.8 billion won.
Despite the worldwide economic slowdown, which caused contraction in the home appliances and construction sectors, and weakened demand for its key products, the company was able to reduce its quarter-on-quarter deficit.
This was achieved after successful regular maintenance during the fourth quarter, which led to an increase in the company’s utilization rate.
Despite oversupply in the upstream market, a gradual improvement in the market is expected in Q2, including a recovery in demand as high season approaches.
The advanced materials company posted revenue of 2.56 trillion won and operating profit of 203 billion won.
The company experienced a significant increase in revenue and profitability of its key products, as demand for battery materials picked up on a quarter-on-quarter basis.
Although a sluggish trend in metal prices may impact the revenue and profitability of battery materials in Q2, the company plans to maintain strong profitability by implementing inventory management strategies and expanding sales of high-value-added IT and semiconductor materials.
The life sciences company posted revenue of 278 billion won and operating profit of 16.4 billion won.
With strong sales of its key products, such as growth hormones and vaccines, the company benefited from a demand recovery in the aesthetics business and reflection of AVEO’s consolidated performance. As a result, all have achieved revenue growth on a quarter-on-quarter basis.
The company expects growth in Q2 to be driven by the launch of a new diabetes treatment and its key products. Additionally, the company will continue its research and development efforts for new drugs, as global clinical trials are currently underway.