LG Chem mulls forming JVs to transform petchem business

According to local media sources, South Korea’s LG Chem is exploring strategies to transform its struggling petrochemical business. Accordingly, the company plans to establish joint ventures with investors from the Middle East.

Following a shareholders’ meeting in Seoul on March 25, the company’s Vice Chairman Shin Hak-cheol addressed questions regarding the competitiveness of the petrochemical sector. “Sale is not the right expression. We are considering various strategic options, including JVs, to ensure competitiveness in raw materials,” he stated.

Shin further added that China’s excessive capacity expansion has challenged the upstream sector’s competitiveness in Asia. Nevertheless, LG Chem’s focus is not on selling businesses but securing raw materials and maintaining partnerships, he said.