Signs MOU with Finland's Neste
LG Chem will produce eco-friendly plastic synthetic resins by using bio-materials instead of petroleum.
LG Chem announced on Nov. 5 that it has signed a memorandum of understanding (MOU) with Finland's Neste, the world's largest biodiesel company, to jointly promote a bio-based environmental business.
LG Chem has secured a stable supply from Neste of vegetable bio materials such as waste cooking oil and palm oil needed to produce eco-friendly synthetic resins. It is planning to produce polyolefin (PO), super absorbent polymer (SAP), acrylonitrile butadiene styrene (ABS), polycarbonate (PC), and polyvinyl chloride (PVC) based on these materials. Production is scheduled to begin in the second half of 2021.
Neste will be able to diversify its business portfolio by expanding its bio-material business to the petrochemical sector.
LG Chem plans to apply for certification by the International Sustainability and Carbon Certification (ISCC) in the first half of 2021. The ISCC is an international certification body consisting of some 250 eco-friendly raw material manufacturers, non-governmental organizations and research institutes. It calculates carbon emission reduction based on purchase and input amounts of bio materials to certify products.