Page 149 - CW E-Magazine (9-4-2024)

News from Abroad

COMPETITION FROM IMPORTS
LG Chem to stop styrene monomer production in Korea

South Korea’s LG Chem is shutting have also fallen in recent years, making
down its 150-ktpa styrene monomer it impossible to meet break-even points.
(SM) production line in Yeosu (South For the same reason, Lotte Chemical sold
Jeolla Province) and is mulling stopping off a stake in its EO production plant in
production of ethylene oxide (EO) and China to a Chinese company last year.
ethylene glycol (EG) in the country to
withdraw from the commodity chemicals Business restructuring
market flooded with low-priced Chinese As part of its business restructuring,
products. meted due to the expansion of facilities LG Chem is also in talks with Kuwait
by Chinese companies. LG Chem is also Petroleum Corp. to sell a stake in a
Last year, the company had shut reportedly considering shutting down EO domestic naphtha cracking centre after
down another SM plant with a capacity of and EG production at its Daesan plant. it failed to sell the facility last year. The
500-ktpa in Daesan, South Chungcheong EO is widely used to make household business reshuffles come as LG Chem
Province. SM, an essential raw material products such as shampoos, disinfectants has been accelerating its shift toward
used to make acrylonitrile-butadiene-sty- and laundry detergents. EG is a vital in- high-value products such as battery
rene (ABS) resin and styrene butadiene gredient for the production of polyester materials and speciality chemicals and away
rubber (SBR), is considered a representa- fibres, film and bottles, as well as automo- from base petrochemicals, given severe
tive product whose prices have plum- tive antifreeze and coolants. Their prices price competition with the Chinese.
WITHDRAWAL PLANS
Japan’s DIC to exit liquid crystal materials business

Japanese chemicals firm, DIC Cor- ary 2022, the company identified thin- business would not be feasible, prompt-
poration, has announced that it will film transistor (TFT) LCs, its core LC ing the decision to withdraw,” the com-
withdraw from the liquid crystal (LC) materials product, as being in need of pany stated.
materials business, accounted for in its structural reform and has explored dras-
Color & Display segment, by the end of tic measures to improve the value of the The LC business locations include
this year. The company also announced LC materials business. “Despite careful part of DIC’s Saitama plant in Japan and
that concurrent with the withdrawal, it deliberation, the persistently challenging part of two subsidiaries in China (Qing-
has resolved to transfer ownership of business environment has led the com- dao DIC Finechemicals Co. Ltd. and
the intellectual property of this busi- pany to determine that continuing the Qingdao DIC Liquid Crystal Co. Ltd.).
ness to Shijiazhuang Chengzhi Yonghua
Display Materials Co., Ltd. (Slichem), PERSONAL CARE
based in China. IMCD acquires Gova Ingredients

DIC commenced the production Dutch distributor of speciality chemi- Through its in-house application labora-
of LCs in 1973 and has been operating cals, IMCD, has announced that its tory, it provides its customers with for-
primarily as a supplier of LCs for use in IMCD Benelux unit has acquired 100% mulation and technical support. With 10
displays. Explaining the reasons for the of Gova Ingredients, an ingredients dis- employees, Gova generated a revenue of
exit, DIC said the business environment tributor for the beauty and personal care approximately €6-mn in 2023.
“has deteriorated” in recent years as a market in the Benelux (Belgium, the
consequence of multiple factors, includ- Netherlands, and Luxembourg). “With its highly complementary
ing intensifying competition with over- product portfolio it further strengthens
seas manufacturers. Established in 1999 and headquar- our position in the beauty and personal
tered in Hoogerheide, Netherlands, care market,” commented Mr. Lodewijk
In the ‘DIC Vision 2030’ long-term Gova provides a portfolio of cosmetic Mellema, Managing Director, IMCD
management plan, announced in Febru- actives and functional ingredients. Benelux.

Chemical Weekly April 9, 2024 149

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