SEOUL (Reuters) - LG Chem, South Korea’s largest chemical company, plans to spend 2.6 trillion won ($2.3 billion) to expand its ethylene and polyolefin production capacity by 2021, it said on Monday.
The investment is part of the company’s efforts to focus on boosting lucrative items and strengthen its competitiveness, it said in a statement.
The expansion will increase the production capacity of LG Chem’s naphtha cracker in the southwestern city of Yeosu by 800,000 tonnes per year (tpy) of ethylene and polyolefin, the company said in a regulatory filing.
The expanded plant is expected to start producing from the second half of 2021, and to increase the company’s total ethylene production capacity to 3.3 million tpy by 2022, according to the company’s statement.
Currently, LG Chem operates a 1.16 million tpy ethylene plant in Yeosu and another 1.04 million tpy ethylene plant in the southwestern city of Daesan.
Reporting By Jane Chung; Editing by Tom Hogue, Amrutha Gayathri