Seoul, Korea (Oct. 25, 2000) - LG Chemical Ltd. has boosted
its capacity of ABS (Acrylonitrile Butadiene Styrene) production in China.
Ningbo LG Yongxing Chemical Co. Ltd., a joint venture of LG Chemical (Korea)
and Yongxing Chemical (China), has raised its annual production capacity up from
60 thousand tons to 150 thousand tons.
After this expansion, LG Chemical would be producing a total
amount of 550 thousand tons both home and abroad. Hereby, LG will become the
world's 4th largest ABS maker.
LG Chemical announced that it recently held a dedication
ceremony to mark the expansion of LG Yongxing's production capacity.
The ceremony was held at the ABS manufacturing plant, Ningbo,
where 300 people of all social standings including Vice-Governor 'Rong-Bao Ye'
of Zhe Jiang Province, Mayor 'Wei-Wen Zhang' of Ningbo and LG Chemical's CEO
Jae-Kap Sung were present.
By recording positive figures consecutively, LG Yongxing is
reputed as a successful case of foreign investment in China. To maintain the
reputation, LG Chemical continues to increase its production capacity, meeting
rising demands of the Chinese ABS market.
When the expansion is completed, LG Chemical would expect a
substantial reduction in its total production cost and thereby consolidate its
position as China's leading ABS manufacturer.
LG Chemical has come to terms on additional production
expansion with Yongxing Chemical Company and plans to increase ABS productivity
in China to 300 thousand tons by H2 of 2002. By then LG would produce 700
thousand tons home & abroad and eventually turn into the third largest ABS
manufacturing enterprise in the world.
Currently the Chinese demand for ABS resins this year is an
estimated 1650,000 tons and the supply for such product dwells at 330,000
tons/yr. Therefore the Chinese market would still have room for more ABS
supply, accommodating LG's additional ABS operation expansion.
LG Chemical has received US$ 2,400,000 in dividends owing to
Ningbo LG's black-ink balance of US$ 4,800,000 in 1999, the first year that the
company commenced production.
Ningbo LG Yongxing prospects a net profit of 10 million
dollars this year, an unprecedented result for a petrochemical plant that
requires tremendous amount of investment in its early stage.
◆ Ningbo LG Yongxing Chemical Co. Ltd.
Invested Amount: US$ 70 million
- Capital Stock: US $ 46.2 Mil.
Holdings: LG Chemical - 75%
Company - 25%
- Beginning of Operation: June, 1998
◆ LG Chemical
- The largest chemical company in
Korea which manufactures petrochemicals, industrial materials, automotive parts,
household goods, electronic materials and pharmaceuticals with annual sales of
KRWon 4,546 billion.
- Sets Life Science and Information & Electronic
Materials as the strategic businesses and will devote its efforts in these high
◆ What is ABS ?
- Raw material used for making high quality plastics which
show characteristics of transparency, weather resistance, heat resistance, flame
retardant, high impact, high flow, high gloss, low gloss, high impact and so
- A key ingredient for household electronic appliances,
office appliances and automotive components.
◆ World's Top ABS Manufacturers
(Unit: thousand tons/yr)..........
information, please contact:
LG Chemical Ltd.,
Public Relations Team (Seoul Korea)