LG Chem has started mass-producing carbon nanotubes in a new facility here, in a move to strengthen its lucrative petrochemical product lineup.
The country’s largest chemical firm added that it has spent some 25 billion won ($21.47 million) to build the plant in Yeosu, South Jeolla Province. The company expects the plant to be in full operation at the end of next year with an annual production capacity of some 400 tons.
As demand for next-generation nanomaterial will continue to grow thanks to its exceptional solidity and insulating efficiency, LG is also mulling building additional factories in 2019, it said.
Carbon nanotubes are currently used in areas as diverse as rechargeable batteries and aircraft superstructure. In particular, with the rise of electric vehicles (EV), growing numbers of battery manufacturers here and abroad are adopting the tube-shaped material.
“We cannot overcome global competition by sticking to existing basic material products,” said Son Ok-dong, president of the firm’s basic materials business division. “LG Chem plans to make aggressive investments in research and development (R&D) not just for carbon nanotubes, but for other potential-laden materials.”
The company expects the global carbon nanobutes industry to post annual growth of 10 percent by 2020 when its demand will reach 1,335 tons from 824 tons last year.
To take a leading position in the industry, the company has pushed for developing its own technologies and patents since 2011. Following its two-year-long investment, the outfit established a pilot plant in 2013 with a manufacturing capacity of 20 tons.
The following year, the firm also developed its first commercial carbon nanotube compounds and those for battery electrodes. With its years-long efforts to lay the foundation for the business, the company has so far obtained some 250 patents both at home and abroad.
The completion of the new plant is expected to help LG Chem diversify its revenue streams in key markets, including North America, Europe and China.
The Yeosu plant’s production capacity is ranked fourth, following the 600 tons from SUSN Sinotech in China, and 500 tons from C-Nano in the U.S and Showa Denko in Japan.
Last week, LG Chem announced that it posted an operating profit of 461.7 billion won in the fourth-quarter of 2016, up 31 percent from the precious year, driven mainly by robust growth in its basic materials business.
In a regulatory filing, the corporation said it would continue to enhance its business portfolio this year, focusing on launching more value-added and premium basic materials products.
