LG Chem Plans Investment of USD 2.2 billion in Biodegradable Materials
- 25-Aug-2021 6:16 PM
- Journalist: Yage Kwon
LG Chem one of world’s largest chemical companies is planning on making a huge investment of 2.6 trillion Won (USD 2.2 billion) for expansion of the company’s production of eco-friendly biodegradable materials and to accelerate the introduction of environmental, social, and corporate governance (ESG) which is a governance model that focuses on the use of green energy and the use of environmentally materials.
LG Chem will be fostering the company’s production base in Daesan as an ESG business hub to produce biomaterials and eco-friendly materials, waste plastic recycling, greenhouse gas reduction by 2028.
The plan includes a Polybutylene Adipate Terephthalate (PBAT) plant with a production capacity of 50,000 tonnes per year to be built in Daesan, and a new Polyolefin Elastomer (POE) plant of annual production capacity of 100,000 tonnes with the commercial production to begin in 2024. The current production capacity of Daesan Plant is 280,000 tonnes per year.
PBAT is a biodegradable copolymer which is marketed as a fully biodegradable alternative to low-density Polyethylene. The polymer is ideal for combining with other biodegradable polymers of high elastic modulus and strength.
POEs are polymers that have unique performance capabilities for compounded products. They are used in automotive parts, wire and cable coatings, films, adhesive, footwear etc.
As per ChemaAnalyst,” the proposed investment towards sustainable eco-friendly biodegradable materials aims at capturing the growing demand for biopolymers. As countries are moving towards a less carbon future, biodegradable polymers will be increasing in demand and there will be need for development of sustainable alternatives to petroleum based polymers.”