LG Chem has signed a strategic partnership with Neste, a leading biodiesel producer based in Finland, to accelerate the production of eco-friendly resins from biomaterials.
Neste is a leading company in the biodiesel field with its own proprietary process technology. 80% of this global company’s operating profit is generated from biofuels and eco-friendly products.
Through this agreement, both companies will be seeking opportunities to commercialize various products based on bio-materials and strengthen their competitiveness in the market, also sharing market intelligence on Asian, European and global markets, and actively cooperating in the product development for new uses.
LG Chem said that is secured a stable delivery of bio-materials for the production of eco-friendly synthetic resins for the coming years. The specifics on the quantity and duration of the cooperation were not disclosed.
Neste’s bio-based raw materials are produced from vegetable oils such as renewable waste cooking oil and palm oil. Compared to fossil fuels eco-friendly materials have substantially higher GHG reduction effects.
LG Chem plans to produce bio-based PO (Polyolefin), SAP (Super Absorbent Polymer), ABS (High-Value-Added Synthetic Resin), PC (Polycarbonate), and PVC (Polyvinyl Chloride). Its aim is to fully produce products by the second half of next year.
Based on its technology and vertically-integrated business structure, LG Chem said that Neste would diversify its business portfolio into the petrochemical sector while incorporating renewable biobased materials into high-value-added products.
“LG Chem’s technology, that of a leading company in Korea’s petrochemical industry, and Neste’s sustainability, that of a world’s largest biodiesel company, have come together to build a partnership that will strengthen global competitiveness for both parties,”
“LG Chem will continue to expand its virtuous cycle business based on bio- and eco-friendly materials,” Noh said. The South Korean company has vowed to increase the proportion of bio-materials.
In July, LG Chem declared “2050 carbon neutral growth” for the first time in the domestic chemical industry to respond to climate change. LG Chem is the first petrochemical company in its sector to self-developed PCR (Post-Consumer Recycled) ABS and new biodegradable materials, while leading by example on Resource Virtuous Cycle Activities and Circular Economy.