LG Chem to Build Joint Venture Plant for PCG and Nitrile Latex in Malaysia

[Asia Economy Reporter Park So-yeon] LG Chem and Malaysian chemical company Petronas Chemicals Group (PCG) are constructing a joint factory for the promising basic material nitrile latex (NBL).

PCG announced on the 24th that it has signed a contract with LG Chem to build an NBL manufacturing plant with an annual capacity of 200,000 tons at the petrochemical complex in Penggerang, southern Malaysia. Construction of the factory will begin in 2021, with production starting in 2023.

NBL (Nitrile Butadiene Latex) is a synthetic rubber material primarily made from butadiene and is a key raw material used to produce nitrile gloves, which are utilized in various fields such as medical, industrial, and culinary applications.

Nitrile gloves have superior strength and chemical resistance compared to traditional natural rubber gloves, making them widely used across many sectors. Their usage has surged recently, especially in relation to COVID-19.

According to industry sources, the demand for nitrile gloves is growing at an annual rate of over 10%. The market size is expected to grow to 280 billion pieces and 7 trillion KRW by 2024, accounting for about 70% of the total latex glove market.

PCG stated, "To respond to the rapidly growing nitrile glove market, we are building a joint factory with LG Chem," adding, "Both companies will develop high value-added products through continuous research, development, and investment."

LG Chem is also expected to leverage PCG's site and infrastructure in Malaysia, the world's largest nitrile glove producer, to secure raw materials stably.

LG Chem's current annual NBL production capacity is 170,000 tons. Starting in 2021, it will produce 100,000 tons annually at its Ningbo plant in China, and from 2023, 200,000 tons annually at the Malaysian PCG joint venture.

LG Chem stated, "The shareholding and investment amounts of both companies in the PCG joint venture are confidential," and added, "We will respond to the growth of the NBL market through the joint factory."

This content was produced with the assistance of AI translation services.