18 December 2013 06:36 [Source: ICIS news]
Correction: In the ICIS news story headlined "Korea's LG Chem to invest W320bn to boost AA, SAP output" dated 18 December 2013, please read in the headline ... W320bn ... instead of ... W350bn ....
(adds comments from company spokesperson)
SINGAPORE (ICIS)--LG Chem will invest up to won (W) 320bn ($304m) to boost its acrylic acid production in Yeosu to 510,000 tonnes/year in 2015, the South Korean chemical firm said on Wednesday.
It represents a 46% increase in the company’s AA capacity, which is currently at 350,000 tonnes/year, it said in a statement.
“The chemical firm also expects revenue increase of W400bn through the revamping, reaching up to W1,700bn by 2016,” LG Chem said.
The investment covers the expansion of LG Chem's super absorbent polymer (SAP) capacity by 80,000 tonne/year to 360,000 tonnes/year by late 2015, a company spokesperson told ICIS.
LG Chem said it is the only manufacturer in South Korea that has the proprietary techmical and vertically integrated facility to produce AA.
AA is used in acrylic fibres, adhesive, paint and ink and coating resins, and is also the raw material for the premium resins called super absorbent polymer (SAP), which is used in diapers and other hygienic commodities.
The AA capacity expansion is being done “mainly for the stable supply of SAP’s feedstocks”, the company spokesperson said.
LG Chem, which is an affiliate of South Korean conglomerate LG Group, intends to develop the AA & SAP business as the core business of group, it said.
“SAP is mainly for making diapers and Europe is the most concentrated region of our export at the moment,” the LG Chem spokesperson said.
($1 = W1,051)
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