LG Chem Petrochemical Unit Falls into Deficit
LG Chem’s petrochemical segment has swung to a deficit compared to the previous quarter. The company aims to submit a business restructuring plan within the year while continuing to build a portfolio centered on high-value-added businesses. In the cathode materials business, it is accelerating its b
The LG Chem petrochemical division recorded a net loss of 600 billion won in the latest quarter, marking a decline in operating profit. This loss is primarily attributed to heightened raw material costs resulting from soaring international oil prices and transportation costs, alongside a weaker exchange rate. The company aims to submit a business restructuring plan within the year.
Meanwhile, LG Chem's advanced materials division is focusing on high-value-added products such as high-density LFP (lithium iron phosphate) cathode materials and high-performance synthetic rubber for electric vehicle tires. This strategic shift aims to differentiate from Chinese competitors and broaden the product range. Semiconductor substrate materials are also expanding into the non-memory field, with the company already supplying global clients as of this year.
Adhesives for automotive electronics and sensors are set to be mass-produced starting next year. LG Chem's CFO emphasized a commitment to improving profitability and business competitiveness through high-value-added businesses while maintaining a balanced approach to growth investments and financial stability.
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