Expanding Chinese Operations
LG Chemical to increase ABS output capacity in Chinese plant

LG Chemical plans to remain the world's largest producer of ABS (Acrylonitrile Butadiene Styrene) by expanding the production capacity of its plant in Zhejiang Province in China. In this connection, the company kick-started its project to expand the production capacity of its Ningbo ABS plant in China by 150,000 tons from the second half of next year when the expansion project is completed at a cost of some $76 million.
The project will boost LG-Yongxing's total annual production capacity to 480,000 tons, making the joint venture firm, the largest producer of ABS in China.
LG-Yongxing started operations in 1998 with an annual production of 60,000 tons of ABS and thus far has produced 330,000 tons of ABS and distributed them all over China and the current expansion plan is the third one for the company growing 100 percent annually.
When the expansion is completed, LG Chemical will have 1.04 million tons of ABS production capacity, 560,000 tons in Korea and 480,000 tons in China, becoming one of the leading producers of ABS in the world.
LG Chemical is actually right behind Taiwan's Chimei in total ABS production capacity, but it leads in the world market share of ABS commanding 15 percent of the market share, the largest in the world ahead of Chimei. LG Chemical's director Lee Nam-yong, in charge of the ABS sector, said the company has been able to save some $11 million in the cost related to the expansion project with the support of the Ningbo municipal administration in such key areas as tax favors and infrastructure.
He said the company would continue to expand its production capacity aimed at the market in southern China and India to the extent that the company would be able to maintain its dominance in the world market for ABS. nw

LG Chemical? ABS plant in Ningbo, Zhejiang Province, China, whose output capacity will be expanded next year.

Roh Ki-ho, president of LG Chemical Co.