LG CHEM Brochure 2011

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LG CHEM Brochure 2011

  1. 1. Whatever You Need... Whatever You Need...LG Twin Towers, 20 Yeouido-dong, Yeongdeungpo-gu, Seoul 150-721, KoreaLG Chem, Ltd. / Tel_ 82-2-3773-1114
  2. 2. You’ll Find It Here. Whether you’re searching for a competitive edge, new experiences, or a more comfortable, beautiful life, LG Chem has the solutions to make it happen. From quality petrochemicals to advanced informationC O N T E N T S technology and electronic materials, we have innovative01 YOUR SOLUTION PARTNER solutions you won’t find anywhere else.06 MESSAGE FROM THE CEO08 VISION09 CORE VALUES If you’re looking for a solution partner to help you10 INNOVATION12 RESEARCH & DEVELOPMENT succeed in the global marketplace, you’ve come to the14 HUMAN RESOURCES right place. 116 GLOBAL BUSINESS22 BUSINESS DOMAIN 24 PETROCHEMICALS Welcome to LG Chem. 28 IT & ELECTRONIC MATERIALS Whatever You Need32 SUSTAINABILITY MANAGEMENT 34 ENVIRONMENTAL RESPONSIBILITY 36 SOCIAL RESPONSIBILITY38 BOARD OF DIRECTORS
  3. 3. “I’m looking for materials that are “I want my work commute to be durable and easy to work with.” smooth and relaxing.” 2 3 At LG Chem, we have reliable solutions. At LG Chem, we have special solutions. Whatever You Need Today’s home appliances and automobiles have to be strong and attractive, both inside and out. Our heat- and Great driving experiences begin with a safe and dynamic ride. When your car runs on tires made with our synthetic impact-resistant ABS resins are easy to work with, so you can make more durable and beautiful products. Our PVC resins rubber and roads paved with our SBS asphalt modifier, the conditions are set for the ultimate ride where you and the for applications such as decorative sheets and gaskets also help enhance product design and performance. And we have road become one. That’s the kind of enjoyment our advanced technology is bringing to life.LG Chem the production capacity to meet all your needs. That’s what keeps us at the forefront of the global ABS and PVC markets.
  4. 4. “I need polarizers for my new “I want thinner, lighter big-screen LCD TV models.” batteries to keep my digital life going all day long.” 4 5 At LG Chem, we have timely solutions. At LG Chem, we have energizing solutions. Whatever You Need Today’s big-screen LCD TVs require advanced polarizers to deliver the brightest, sharpest pictures. Our TFT-LCD Perhaps the biggest challenge of the mobile digital lifestyle is how to keep it powered. We are a global leader in the polarizers can compete with anything on the market. We have the technology and capacity to deliver polarizers for small-, medium-, and large-format rechargeable battery fields. Our ongoing R&D and capacity expansions enable us to second- through seventh-generation motherglass sizes as well as the latest 100-inch displays. And as LCD TVs grow offer lithium-ion and lithium-polymer batteries with custom form factors and increasing energy densities to keep yourLG Chem bigger, you can be sure that we’ll be ready. That’s the kind of innovation that makes entertainment larger than life. digital devices thin, light, and working all day long. That’s the kind of thinking that makes the digital life a delight.
  5. 5. MESSAGE FROM THE CEO “ We aim to be a world-class solution partner, delivering the innovative materials and solutions customers need to succeed. ” At LG Chem, we have been meeting the results Faster than competitors by focusing on core We continue to place great emphasis on needs of customers for more than 60 years now. Since tasks and checking these changes More Frequently creating a Great Work Place for all our employees, our founding as Lucky Chemical Industrial Corporation than competitors to ensure we review our progress somewhere they can both have fun and develop a back in 1947, we have grown to become a global player toward our goals until they are achieved. The Speed sense of worth, equipping them with world-class in the chemical industry, with an annual revenue of over Management execution principles of Earlier than capabilities and leadership skills as we strive to KRW 19.5 trillion and more than 16,000 employees competitors, Faster than competitors, and More transform our organization and culture to thrive in worldwide. Frequently than competitors are becoming an integral today s global marketplace. part of our DNA. From the very beginning, our mission has Sustainability is another one of our been to provide customers with greater satisfaction and In 2011, the growth rate in China, a ongoing areas of focus. As a responsible chemical value through better products and service. In the early strategic market for LG Chem, will slow down, as will company, we are dedicated to strengthening our years, that dedication helped drive growth and improve forward industries such as IT. In addition, the overall environmental leadership and practicing trans- the quality of life in Korea, enabling us to emerge as one business environment looks bleaker than last year, with parency and integrity in management with a of nation’s most respected chemical companies. Today, a stronger Korean won forecast for the year ahead. progressive governance structure. We are also we are delivering the petrochemicals and information However, over the past few years, our entire workforce actively involved in educational outreach programs technology and electronic materials that are doing the has actively embraced and experienced the benefits of and a broad range of community service activities as same for the world as we aim to be a global leader in Speed Management, acquiring the capabilities we need we strive to be a trusted and respected member of chemicals. to rise above the challenges ahead. Building on this solid our local communities. foundation, we are now pushing ahead with our core As we enter our seventh decade in Today, our passion for helping our initiatives of No.1 in Core Business , Customer Value business, we have rededicated ourselves to global customers succeed and ambitious plans for the future Creation , and Global Organizational Capability 6 excellence. Guided by our core values of Customer are driving us forward as we aim for global greatness 7 enhancement, all of which will allow us to continue Value Creation, Execution, and Mutual Respect, we in our second half-century of business and beyond. gaining speed as we deliver growth that is both aspire to be a global leader that grows with customers by And as we become a top solution partner that brings sustainable and profitable. providing innovative materials and solutions. Practicing greater success and prosperity to life for our Speed Management is key to achieving this vision. In the In addition, we continually reform our customers, we will also be attaining our dream of Whatever You Need Speed Management paradigm, market- and customer- practice of reporting, meeting, and leaving the office to being a truly global chemical company. We look centric thinking is the key to doubling the speed of focus on core by reducing unnecessary tasks and push forward to serving and growing with you in the years change both in business and in people. At its core, Speed ahead with ‘finding and reinforcing strengths’ so to ahead.LG Chem Management is about anticipating changes and preparing enhance team sprit and create excellent performance. for these changes Earlier than competitors, achieving Peter Bahnsuk Kim I Vice Chairman & CEO
  6. 6. VISION CORE VALUES We deliver value that substantially improves WE AIM TO BE A GLOBAL LEADER, customer performance and competitiveness. We act to enhance customer value with a GROWING WITH CUSTOMERS BY customer-centric mindset and a deep understanding of both our customers and their markets. PROVIDING INNOVATIVE MATERIALS AND SOLUTIONS. CUSTOMER VALUE We strive to be trusted and admired by our customers, the most attractive CREATION A GLOBAL LEADER investment to investors, the workplace of choice for the best and the brightest, and feared and emulated by our competitors. We grow with our valuable customers by delivering innovative value Core Values GROWING WITH CUSTOMERS that helps them thrive and prosper. MUTUAL EXECUTION We deliver the best materials to ensure the success of our customers. These innovative RESPECT INNOVATIVE MATERIALS materials are superior in both price and performance to the competition, enhancing the performance of every product our customers make. We solve customer problems and improve their performance by providing INNOVATIVE SOLUTIONS innovative solutions encompassing products, services, and expertise tailored Execution is essential to bringing Mutual respect plays a key role in building effective to match their specific needs. corporate objectives and aspirations to fruition. teams and the capacity to make breakthroughs. It is a systematic process that requires an This teamwork, strengthened by mutual recognition and objective view of reality, thorough analysis, respect, is what empowers us to achieve our goals. and concrete planning to achieve our goals. 8 9 Whatever You NeedLG Chem
  7. 7. INNOVATION Speed Management to Create Excellent Performance Double the Speed of Change in Business 2 Speed Management, a unique means to E (Performance) = M (Resource) • C (Speed) guiding implementation of LG Way in LG Chem, enables Double the Speed of Change in People acceleration of strategy execution and organizational transformation with a focus on market and customer, to realize our vision as a Global Leading Company that delivers sustainable performance excellence. There are Our on-site innovation initiatives, such as Quality Control three core Speed management initiatives- No.1 in Core (QC) and Total Productive Maintenance (TPM), have helped Business , Customer Value Creation , and Global build a systematic facility management mechanism across Organizational Capability -of which are executed through our plants, resulting in maximum productivity and minimum an Earlier preparation than competitors , Faster defects to deliver products with world-class quality. We results than competitors , and More Frequent check deployed Six Sigma across organization to secure cost and than competitors approach. Speed Management requires product leadership in 1999, so that we could proactively and us to concentrate on our core strengths to provide flexibly adapt to increasingly sophisticated and evolving excellent performance. In business management, we are customer needs. Our Six Sigma program brings in the best deploying the Core Focused Strategy to focus our time and the brightest from different areas of the company to and effort on our core, competitive business areas. In solve problems. To further facilitate such innovation people management, we identify and further reinforce the programs, we hold Best Practice Contest every year to share strengths in our people. In addition, our people accumulate our innovation performance and recognize people for their success experiences of achieving challenging goals with efforts. strong desire and through flow. By building up these success experiences, we are acquiring breakthrough capability that consistently creates excellent performance. Our active innovation is taking our10 competitiveness to the next level. Speed Management Execution principle 11 Realizing Our Vision Earlier than Competitors look forward and prepare in advance At LG Chem, we are now practicing Speed Management across the enterprise to meet our Faster than Competitors derive outcome by focusing on the core business targets and bring us a step closer to achieving our vision of being a global leader. We • Core Initiatives No.1 in Core Business More Frequently than Competitors check progress status and achieve goals Whatever You Need • Customer Value Creation continue to expand our Six Sigma and total productive maintenance (TPM) initiatives as we • Global Organizational Capability systematically take our competitiveness to the next level. Focusing on StrengthsLG Chem Execution Principle •‘Earlier than competitors Business: Core-focused strategies •‘Faster than competitors •‘More Frequently than competitors People: Find and reinforce strengths
  8. 8. RESEARCH & DEVELOPMENT An Engine for Continuous Growth color filter photoresists, OLED materials (which are expected to become a next-generation display), printed circuit board LG Chem runs a Corporate R&D Center, materials, and, most recently, FPR (film patterned retarder) an IT & Electronic Materials R&D Center, a Battery R&D passive 3D glasses. Center, and a Petrochemicals R&D Center. We have also put together a global R&D network with satellite labs in the United In the battery business, we were able to mass-produce lithium States, Germany, Russia, China, and, as of 2011, Japan. We polymer batteries for the Hyundai Avante hybrid car in July currently have more than 1,300 professionals on our 2009, and for GMs electric vehicle, the Volt, in December multidisciplinary research staff, 25% of which have doctorates. 2012. We are currently the top producer of the leading lithium- We have registered more than 11,000 patents worldwide to ion batteries for electric cars in the world, and our clients date, creating a growing intellectual property portfolio that is include global auto giants such as GM, Ford, Hyundai, and making us increasingly competitive in the global marketplace. Renault. As well as reinforcing core businesses, we are committing ourselves to developing future growth engines. We continuously invest and strategically allocate resources to develop value-added premium products, optimize Today, we are leveraging core competencies cultivated over manufacturing processes, and incubate businesses that will the years to develop and integrate entirely new technologies drive future growth. To this end, we actively recruit and train as we work on next-generation display materials, green core talent, select and manage projects that meet the needs of energy solutions such as materials for solar cells, batteries both our customers and the market, integrate existing core for hybrid electric vehicles, next-generation semiconductor technologies with new ones, and prepare for new businesses materials, and cutting-edge eco-friendly materials. In the in the future. coming years, LG Chem will conduct extensive R&D to acquire original technology so we can expand differentiated products Increasing Our Competitive Edge and Expanding lines, securing future competitiveness as well as top business First-Mover Advantage results. Our R&D initiatives are closely tied with enhancing our competitiveness in our major business areas. We are boosting our cost competitiveness in the field of petrochemicals by developing premium polyolefin products that use new material catalysts, while also conducting a wide range of R&D programs. Furthermore, we are continuing to make significant advances in the field of information Our results-driven R&D technology and electronic materials, an area we identified as an engine for growth back in the mid-1990s. Over the years, organization is delivering the future we have developed and launched TFT-LCD polarizers, LCD12 our customers want. R&D Investment in KRW billions Global R&D Organization 13 At LG Chem, we are leading our industry into the future through basic and applied research in the Corporate R&D Center 295.2 fields of petrochemicals, information technology and electronic materials, and batteries. 219.7 253.8 IT & Electronic Materials R&D Center LG Chem Whatever You Need Supported by state-of-the-art facilities, top-notch personnel, and a global R&D network, we Research Battery R&D Center Park continue to develop the innovative materials and technologies that will create the value for Petrochemicals & Polymers R&D CenterLG Chem customers around the globe. Japan R&D Center 08 09 10 Administration
  9. 9. HUMAN RESOURCES Recruiting and Developing the Best LG Chem Employees… “People who have strong belief in the LG Way” We believe that our competitive edge is our people. Accordingly, recruiting and training is an Passion for Global No.1 Customer First and Innovation company-wide priority. For the last seven years, we have hit the road to recruit top talent from around the world, Autonomy, Creativity and Teamwork Integrity and Fair Competition especially through our annual Business & Campus Tour and Tech Fair academic seminar programs, in which LG Chem s CEO participates. We also fund scholarships at career plans. Then we evaluate them fairly and reward major Korean universities, including an academic program high performers with fast-track promotions and a variety whose focus is on secondary batteries, to create a hiring of incentives. We also implement the Together Program pool of highly qualified chemical and mechanical engineers for second-year employees, which helps them find their with practical experience. strengths and establish career development plans, as well as a Professional Leader program for second-year Continuous training and development at all levels is an assistant managers to help them rebuild their career integral part of our HR policy. We have succession plans in vision. place for key positions to ensure we have world-class business leaders. Our High Potential Individual (HPI) program We recognize that happy employees are performing better and Next-Generation Global Business Leader program help than who are not. Our wide range of employee welfare identify and develop next-generation business leaders. programs aims to improve the quality of all aspects of life Furthermore, our training programs can be divided into three for our people. Basic benefits include housing rental and general categories: core talent training, management and purchase assistance, school tuition for dependents, health cross-cultural training, and professional training, each of check-ups and medical expense support, congratulatory which includes in-house or external training depending on and condolence payments, and dormitory housing for plant the individual s position and skill set. employees. We also support club activities and operate recreational and resort facilities. Our flexible benefits plan has given our people greater choices and control over their Creating a Great Place to Work welfare benefits since 2006, further enhancing employees’ satisfaction. We respect the ingenuity and autonomy of our people and value their capabilities and contributions as we strive to give each one equal opportunity to advance Our world-class employees are the and excel. We start by assigning new hires to departments that match their preferences and aptitudes. We help them achieve their full potential and coach them based on their reason we are becoming a leading14 global company Workforce Statistics As of the end of 2010 Global Operations Korea Operations HR Principles 15 Value Respect for Individual Creation Creativity & Autonomy At LG Chem, our approach to delivering customer value innovation and enhancing the competitiveness of our businesses is simple. We hire quality people, develop their competency more, 16,062 9,373 Whatever You Need motivate them to create great performance based on innovative corporate culture, and then fairly Management Emphasis on Competency Performance-Based Compensation Style evaluate and compensate them. It s a sound approach that has earned us “Best Human ResourceLG Chem 57.5%_ Korea 26.7%_ Administrative Developer” certification from the Korean government as well as the top award in the HR category at 42.5%_ Overseas 51.8%_ Production Basic Long-Term Equal Opportunity Principles Perspective the Korea Management Awards from KMA Consultants for the past five straight years. 21.5%_ Research
  10. 10. GLOBAL BUSINESS Our Global Business is Growing As we look ahead to the future, we are formulating market-specific strategies and expanding our business We operate worldwide through a global infrastructure in each region as we steadily diversify into network of 29 business locations in 15 countries. This new markets worldwide. Beyond enabling us to grow our network includes a holding company in China, 14 overseas information technology and electronic materials, our manufacturing subsidiaries, five marketing subsidiaries, global network is helping us secure the world’s most seven representative offices, and two R&D centers. advanced technologies, making us an even more Despite challenging market conditions in 2010, our focus formidable competitor in the global marketplace. on improving the profitability of our local sales operations helped us generate significant qualitative growth. Overseas markets generated more than USD 10.52 billion in sales during the year, representing over 63% of total sales. Overseas business accounts for 65% of the petrochemical sector s total business, 40% of information technology and electronic materials, and 91% of batteries. Not only did China continue to dominate our global business strategy, accounting for 63% of overseas sales, but it also emerged as our second domestic market. In addition, we reaped the benefits of market diversification as sales continued to rise in North America, Europe, and Japan, as well as emerging markets such as India, South America, the Middle East, and Africa. We continue to localize our operations and enhance the capabilities of our local staffs through short-term training sessions at our headquarters and a numerous other initiatives. Our focus is on bringing greater16 value to customers around the globe. 2010 Overseas Sales Overseas Sales in USD millions 17 10,523 At LG Chem, we are becoming more global every day. Our products and services are 7,900 BY 7,522 creating value and transforming life for customers across China, Asia, the Americas, and REGION BY CATEGORY Whatever You Need Europe. We are tailoring our aggressive global strategy to the needs and circumstances of each market as we set our sights on becoming one of the world’s largest and most- 63%_ China 77%_ PetrochemicalsLG Chem profitable chemical makers. 37%_ Rest of World 11%_ IT & Electronic Materials 12%_ Batteries 08 09 10
  11. 11. GLOBAL BUSINESS CHINA C H I N A UNITED STATES R E S T O F W O R L D LG Chem has been operating subsidiaries such Despite an unfavorable real estate market, we as ABS, EP, PVC, EDC, VCM, SBL, and SBS since it entered the continue to expand our customer and revenue base in the solid Chinese market. It also established its first manufacturing surface field as we aggressively pursue opportunities in subsidiary there, LG Yongxing, and expanded into new areas such petrochemicals, batteries, auto interior coverstocks, and other fields. as secondary batteries and polarizers in 2003. Today, LG Chem In particular, we are aggressively looking to advance into the North (China) Investment Co., Ltd.-our local holding company-oversees American market, as was backed up by our groundbreaking one marketing and ten manufacturing subsidiaries. We continue to ceremony in July 2010 for electric car batteries in Holland, Michigan, steadily expand our R&D and training capabilities here as we which was attended by VIPs that included President Obama. become an increasingly important employer in the local economy. EUROPE A rising local petrochemical capacity has recently begun to put downward pressure on prices. LG Chem responded by shifting its LG Chem Europe GmbH is actively targeting focus to boosting our cost competitiveness in the petrochemicals end-consumers to boost profitability with higher-margin specialty field, as well as focusing on developing growth engines in the product sales across the continent. We are carrying out localization information technology and electronic materials fields. With local projects at a steady pace, including the commissioning of a polarizer PVC production capacity holding steady at 400,000 tons, we are set post-processing plant in Poland. In the future, we aim to grow sales to increase our ABS capacity in Hunan Province by 300,000 tons, of value-added products as we build a high-performance business from the current capacity of 600,000 tons, by 2015, solidifying our network. position as a global market leader. BRICs We will continue to assemble a more robust and profitable business portfolio in the coming years by enhancing our local cost We have actively pursued opportunities in India competitiveness in petrochemicals - our largest business field - as since establishing LG Polymers India in Vizag in 1996. The steady we step up exports of value-added products. We will also be actively growth of India s auto, construction, and home appliance industries pursuing new growth opportunities as we shift our focus to door makes the PVC and ABS businesses our primary targets. Since and window systems, high-gloss sheets, LCD polarizers and other setting up our Moscow office in 2004, we have expanded its promising industrial, information technology, and electronic marketing mandate beyond Russia to cover the CIS and Far East. materials. Founded in 2005, our Brazil marketing subsidiary continues to increase petrochemical sales throughout Latin America.18 China Sales in USD millions Rest of World Sales in USD millions 19 6,630 3,893 5,105 5,069 2,831 2,417 Whatever You NeedLG Chem 08 09 10 08 09 10 * Figures include both direct exports and sales by local subsidiaries in mainland China and Taiwan.
  12. 12. GLOBAL NETWORK Paju Plant Head Office Daesan Plant Ochang Techno Park Research Park Cheongju Plant Iksan Plant Gimcheon Plant Ulsan Plant Onsan Plant Naju Plant Yeosu Plant Manufacturing Subsidiaries Marketing Subsidiaries Representative Offices Domestic Plants R&D Center Manufacturing Subsidiaries Marketing Subsidiaries Representative Offices Domestic Plants Name Location Name Location Name Location Research Park Naju Plant Gimcheon Plant Tianjin LG DAGU Chemical Co., Ltd. Tianjin LG Chem (China) Investment Co., Ltd. Beijing LG Chem, Ltd. Moscow Office Moscow Area_ 24,800 m2 Area_ 85,530 m2 Area_ 562,793 m2 Tianjin LG Bohai Chemical Co., Ltd. Tianjin Shanghai LG Chem, Ltd. Istanbul Office Istanbul Major Business_ New Materials Research Major Businesses_ Octanol, Butanol, Plasticizers, Acrylic Acid Major Businesses_ SAP (Super Adsorbent Polymer) Tianjin LG Botian Chemical Co., Ltd. Tianjin Guangzhou LG Chem, Hochiminh Office Ho Chi Minh Ningbo LG Yongxing Chemical Co., Ltd. Ningbo Nanjing LG Chem, Ltd. Bangkok Office Bangkok LG Chemical (Guangzhou) Engineering Plastics Co., Ltd. Guangzhou Chongqing LG Chem, Tokyo Office Tokyo LG Chem (Tianjin) Engineering Plastics Co., Ltd. Tianjin Qingdao LG Chem, Jakarta Office Jakarta Yeosu Plant Cheongju Plant Paju Plant LG Chem (Nanjing) Information & Nanjing Shenzhen LG Chem, Singapore Office Singapore Area_ 991,735 m2 Area_ 226,490 m2 Area_ 390,000 m2 Electronics Materials Co., Ltd. Yantai Major Businesses_ NCC, SM, PE, PVC, VCM, ABS, SAN, EPS, Acrylates, Major Businesses_ Electrolytes, PCM, Photoresists, Secondary Batteries Major Businesses_ LCD Glass Panels20 LG Chem Display Materials (Beijing) Co., Ltd. Beijing LG Chem Hong Kong Ltd. Hong Kong Octanol, NPG, SBS, MBS, BPA 21 LG Chem (Taiwan), Ltd. Taipei LG Chemical India Private Ltd. New Delhi R&D Centers LG Chem Poland Sp. z o.o. Wroclaw LG Chem America, Inc. New York Name Location Ulsan Plant Daesan Plant LG Polymers India Privat Ltd. Mumbai Los Angeles LG Chem Power Inc. Troy Vizag San Jose Area_ 12,161 m2 Area_ 1,297,477 m2 LG Chem, Ltd. Japan R&D Center Tokyo Major Businesses_ Plasticizers Major Businesses_ NCC, EO/EG, SM, BD, MTBE, PE, PP, Synthetic Rubbers, LG VINA Chemical J/V Company Ho Chi Minh Austin PVC, VCM LG Chem Michigan Inc. Holland Houston Whatever You Need CNOOC & LG Petrochemicals Co., Ltd. Huizhou LG Chem Brasil, Ltd. Sao Paulo LG Chem Europe GmbH Frankfurt Ochang Techno Park Iksan Plant Area_ 94,636 m2LG Chem Area_ 248,209 m2 Major Businesses_ Rechargeable Batteries, Display Materials, Optical Major Businesses_ ABS Compounds, EP Materials
  13. 13. BUSINESS DOMAIN • Batteries • Optical Materials • Electronic Materials At LG Chem, our goal is to produce and deliver the essential • Techno-films materials and solutions that help industries grow and make life more convenient and comfortable for customers around the world. IT & ELECTRONIC MATERIALS Our vertically integrated Petrochemicals business manufactures basic naphtha feedstocks, polyolefins, synthetic rubbers and specialty polymers, PVC resins, ABS resins, engineering plastics, acrylates, plasticizers, and other high-quality petrochemicals. Our IT & Electronic Materials business manufactures high-tech lithium- PETROCHEMICALS ion and lithium-ion polymer batteries, optical materials, electronic materials, and Techno-films. Join us now for a closer look at the dynamic and innovative materials and solutions that our six decades22 23 • NCC / Polyolefins of experience, expertise, and technology are bringing to life. • Rubbers / Specialty Polymers • PVC • ABS / EP • Acrylates / Plasticizers Whatever You NeedLG Chem
  14. 14. PETROCHEMICALS Our mergers with LG Daesan Petrochemicals in 2006 and LG Petrochemical in 2007 have given us a vertically integrated production We support our customers in their quest for success by system that continues to enhance the synergy of our operations. At the same being a reliable source for chemicals and polymers. time, our recently expanded ABS plant in China has solidified our position as At LG Chem, we are a major global supplier of quality petrochemicals ranging from the global ABS industry leader, while our new styrene-butadiene latex (SBL) basic distillates to specialty polymers. Our extensive experience and advanced technology are enabling us consistently break new ground in the industry with high- plant there is now playing a key role in expanding the weighting of specialty performance products. product grades in our portfolio. Today, we continue to systematically lay the foundation for future growth. At home, we are steadily expanding the capacity of our Daesan naphtha cracking center. In China, we are growing our PVC business as we enter the specialty polymers business. In the longer term, our increasing vertical integration will enhance our revenue base as we focus on upgrading and streamlining our business operations and selectively developing innovative new products that will improve our bottom line.24 25 Whatever You NeedLG Chem
  15. 15. PETROCHEMICALS NCC / PO ABS / EP Major Product Categories Our mergers with LG Daesan Petrochemicals in Acrylonitrile-butadiene-styrene (ABS) resins 2006 and LG Petrochemical in 2007 have enabled us to achieve full are produced with SM feedstock and are extensively used in electric vertical integration in the PVC and ABS businesses. Our naphtha and electronic devices, auto parts, industrial materials, and These thermoplastic resins are cracking centers (NCC) in Yeosu and Daesan thermally “crack” or Our Yeosu and Daesan NCCs everyday plastics. Our recently expanded China plant has increased used in electric and electronic thermally crack naphtha to break down naphtha into feedstocks such as ethylene, propylene, components, auto parts, industrial our annual production capacity to 1.3 million tons, making us the BASIC FEEDSTOCKS produce ethylene, propylene, materials, and a wide variety of mixed C4s, and pyrolysis gasoline that we sell worldwide for use in a butadiene, benzene, and other global industry leader in both scale and market share. ABS everyday plastic products. Our basic feedstocks. Our 2006~2007 wide range of downstream products such as polyolefins (PO), plants in Korea and China have a center expansion projects in- combined capacity of 1.06 million bisphenol A (BPA), ABS, PVC, octanol, acrylic acid (AA), synthetic creased ethylene production Engineering plastics (EP) resins are used in applications such as tons, making us the global market capacity to 1,660,000 tons and rubbers (SBR/BR), styrene monomer (SM), and ethylene glycol (EG). leader in the transparent and electric and electronic components, auto parts, and conductive propylene capacity to 960,000 heat-resistant ABS market We increased our production of ethylene to 1.95 million tons and tons. materials. We can produce 250,000 tons of EP resins annually. Our segments. propylene to 1.1 million tons annually by adding new NCC facilities in high-performance resins have outstanding mechanical and thermal 2010 and 2011. Polyolefins are polymers such as polyethylene (PE) properties that make them ideal structural materials and suitable and polypropylene (PP), both plastic resins known for outstanding alternatives for metals and thermoset resins. work ability. They are used to make electric wire insulation, films, pipes, and a wide range of injection-molded products. The quality of ACRYLATES / PLASTICIZERS Our primary synthetic rubber RUBBERS/SPECIALTY POLYMERS our PO products is recognized worldwide. products are SBR and BR, both commonly used in tires and shoe Acrylates get their excellent Acrylic acid and esters are widely used as soles. They are known for their chemical reactivity from the SYNTHETIC RUBBERS & SPECIALTY POLYMERS feedstocks to make super-absorbent polymers, textiles, paints, ACRYLATES excellent abrasion resistance, double bond and functional group tackiness processability, rebound, of their molecular structure. Their adhesives, and impact modifiers due to their superior reactivity. We and low-temperature properties. many applications include highly We produce a broad lineup of synthetic rubbers produce isopropyl alcohol (IPA), a solvent used in paints and inks, SBS is a specialty polymer used absorbent resins, textiles, paints, and specialty polymers using Butadiene (BD), SM and Benzen as primarily as an asphalt modifier to adhesives, and impact modifiers. and high-purity IPA for cleaning semiconductor wafers and LCDs. improve elasticity, impact re- our primary feedstocks. Our styrene-butadiene rubber (SBR) and We have also developed neopentyl glycol (NPG) for use in saturated, sistance, and durability. butadiene rubber (BR) products are used in tires, shoe soles, while unsaturated, and urethane resins as well as water-soluble our acrylonitrile butadiene rubber (NBR) is used for shoe soles, polycarboxylic copolymers for use in high-performance concrete gaskets, and hoses. admixtures and pressure sensitive adhesives (PSA) designed for display films. In 2008, we have acquired the superabsorbent In the specialty polymers field, we produce methyl methacrylate- PVC polymer (SAP) business to integrate the SAP business with existing26 27 butadiene-styrene (MBS) impact modifiers for PVC products, acrylic monomers business. styrene-butadiene-styrene (SBS) with rubber-like elasticity that is We produce PVC straight, paste, Polyvinyl chloride (PVC) is widely used in pipes, and specialty resins for use in ideal for asphalt and waterproof sheets, adhesives, and shoe soles flexible and rigid sheets, window profiles, and floorcoverings. Our Plasticizers are added to resins and polymers to improve their pipes, flexible and rigid sheets, PVC as well as a plastic modifier, SB Latex, raw material for paper window profiles, floor coverings, PVC lineup includes straight, paste, and specialty resins. workability and physical properties. We currently produce and many other products. We also coating, NBR Latex for Nitrile Gloves, and BPA for polycarbonate Whatever You Need Continuous expansion and debottlenecking of our PVC plants in commodity and specialty plasticizers. Our eco-friendly glycol-based produce the non-toxic PVC resin and epoxy resins. for food and beverage packaging. Korea and China has made us one of the world’s largest producers. plasticizer-an industry first-has established us as one of the Our vinyl chloride monomer (VCM) and ethylene dichloride (EDC) industry’s most innovative makers.LG Chem plants that came online in China in 2007 have further enhanced our cost competitiveness.
  16. 16. IT & ELECTRONIC MATERIALS We continue to increase the capacity utilization ratio of our battery business. Our recently expanded mobile-phone battery line in Nanjing, We help our customers make tomorrow happen today with China has boosted our overseas production capacity to 10 million cells annually. We advanced materials and solutions for the information revolution. At LG Chem, we supply rechargeable lithium-ion and lithium-ion polymer batteries, optical materials are also stepping up our investment in LCD polarizer production with a ultra-wide such as LCD polarizers, color filter photoresists, and PDP filters, and electronic materials such as lines in Ochang, Korea as well as additional back-end processing capacity in China printed circuit board materials and toners to a client list that includes some of the world’s biggest electric and electronics manufacturers. Our ongoing investment in R&D, innovative products, and and Taiwan as we position ourselves for growth in those markets. progressive marketing continues to make this our fastest-growing business area. Looking ahead to the future, our goal is to raise IT & Electronic Materials Group sales from the current 20% level to 30% of the total by 2012. Toward this end, we will focus on developing value-added optical materials, gaining a cost edge in batteries by bringing production of key materials in-house, and building a presence in the medium- and large-format battery fields. We will also be expanding our business portfolio into profitable, fast-growing clean energy fields and nanomaterials.28 29 Whatever You NeedLG Chem

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