LG Chem announced on Nov. 5 that it has signed a strategic partnership (MOU) with Finland's bio-diesel company Neste to expand its bio-based eco-friendly business.
Neste is a leading bio-diesel company with its own process technology, and 80% of the company's operating profit is generated from bio-materials and eco-friendly products that utilize them.
Under the agreement, the two companies will actively cooperate in developing new products by seeking commercialization of eco-friendly products based on bio-materials and sharing information on global markets such as Asia and Europe.
It is predicted that LG Chem will be able to receive stable supplies of bio-materials needed to produce eco-friendly synthetic resins from Neste over the next few years.
The company explained that Neste's bio-materials are produced from vegetable oils such as renewable waste cooking oil and palm oil to reduce greenhouse gas emissions compared to fossil materials.
LG Chem is planning to produce bio-material-based PO (polyolefin), SAP (high absorbent resin), ABS (acrylonitrile butadiene styrene copolymer), PC (polycarbonate), and PVC (polyvinyl chloride) starting from the second half of next year.
Through this partnership, LG Chem plans to accelerate its sustainability strategy by reducing greenhouse gas emissions. "LG Chemical will continue to expand its resource virtuous cycle business based on bio-materials and eco-friendly materials in order to achieve '2050 Carbon Neutral Growth'," said Noh Kook-rae, head of LG Chem's petrochemical business division.
