Big Push for Eco-friendly Materials Business
LG Chem announced on Aug. 19 that it will invest 2.6 trillion won by 2028 to establish a total of 10 new plants in its Daesan Complex in South Chungcheong Province to produce eco-friendly materials such as biodegradable polybutylene adipate terephthalate (PBAT) and polyolefin elastomer (POE) for photovoltaic films.
The company will start the construction of the PBAT and POE plants this year and grow Daesan Complex into a mecca for environmental, social, governance (ESG) management-based businesses, including bio-based raw material and eco-friendly materials, waste plastic recycling, and greenhouse gas reduction.
The PBAT plant will be built to have an annual production capacity of 50,000 tons and the POE plant an annual production capacity of 100,000 tons. Both plants aim for commercial production in 2024. As a result, sales are expected to grow by more than 470 billion won per year.
Industry insiders predict that PBAT and POE businesses will continue to grow at an annual average of 30 percent until 2025, due to an increase in demand for biodegradable plastics and the increased supply of new and renewable energy according to growing ESG trends.
PBAT is a biodegradable resin that decomposes quickly in nature so it is expected to help solve environmental problems such as waste plastics. POE has high insulation and moisture barrier and excellent power generation efficiency. Therefore, demand for POE for film that protects solar panels and minimizes power loss is on a sharp rise.
In case of POE, LG Chem currently runs a POE plant with an annual production capacity of 280,000 tons in Daesan. The completion of the facility with an annual production capacity 100,000 tons will expand LG Chem’s POE annual production capacity to 380,000 tons which is the world's second largest POE production capacity.