LG Chem revamped its business structure from the previous four business headquarters and one business division to four business headquarters on April 1. The reorganization was characterized by the establishment of the high-tech material business headquarters, which illustrated the company's focus on the high-tech materials business.
The organizational change was led by Shin Hak-cheol, who was appointed as CEO of LG Chem in 2018. Shin was the first outsider to be named as CEO of LG Chem.
LG Chem's business structure changed to the Petrochemical, Battery, High-Tech Material And Life Science Business Headquarters from the Basic Material, Battery, Information and Electronic Material, Life Science Business Headquarters and the Material Business Division.
The main purpose of this reorganization is to strengthen the high-tech material business. The newly established High-Tech Material Headquarters will integrate the Information And Electronic Material Business Headquarters, the Material Business Division and the Engineering Plastic (EP) Division in the Petrochemical Business Headquarters. Under the High-Tech Material Business Headquarters are three business divisions – the Automobile Material, IT Material and Industrial Material Divisions.
The Automobile Material Business Division will lead the automotive-related high-strength and lightweight materials business, centering on the EP business, and the IT Material Business Division is planning to focus on the display material market, which is chaning rapidly due to the Fourth Industrial Revolution. The Industrial Material Business Division focuses on strengthening the company’s competitiveness in the industrial material business in the eco-friendly energy sector including anode materials with big growth potential.
In order to pursue growth in clear business areas with strategic directions, the Basic Material Business Headquarters will change its name to the Petrochemical Business Headquarters and further strengthen vertical integration from basic raw materials to catalysts to final products based on differentiated technology and operational capabilities.
"Continuous innovation is needed in the field of materials due to the effects of the fourth industrial revolution. This will be another opportunity for growth," vice chairman Shin said. “We will actively nurture the advanced material business as the third axis of our growth following the petrochemical and battery business. We will continue to build a business portfolio for sustainable growth by changing all of business structures and methods of work to make them focus on customers and markets."