LG Chem to Produce Transparent ABS Using Recycled Materials

Strategic Partnership Agreement with Veolia R&E
Joint Research and Facility Investment for Advanced Quality of Recycled MMA

Executives from LG Chem and Veolia Korea are posing for a commemorative photo after signing a Memorandum of Understanding (MOU) at the LG Twin Towers in Yeouido on the 30th. From left to right: Guillaume Clicksong, Chief Operating Officer (COO) of Veolia Korea; Marcel Gavorel, Chief Executive Officer (CEO) of Veolia Korea; Noh Guk-rae, Head of Petrochemical Business Division at LG Chem; Shim Kyu-seok, Head of ABS Business Division at LG Chem.

[Asia Economy Reporter Kim Hyewon] LG Chem is starting the production of transparent high value-added synthetic resin (ABS) using recycled raw materials.

On the 30th, LG Chem announced that it signed a 'Strategic Partnership (MOU) for Stabilizing the Supply and Enhancing the Quality of Recycled MMA' with Veolia R&E, the largest domestic recycled methyl methacrylate (MMA) production company, at LG Twin Towers in Yeouido.

MMA, the key raw material for transparent ABS, is a colorless transparent liquid compound widely used across industries as a raw material for automobiles, home appliances, IT devices, and artificial marble building materials. According to the industry, the global market demand for transparent ABS is expected to grow at an average annual rate of over 6%, from about 270,000 tons this year to about 360,000 tons by 2026.

Veolia R&E is a subsidiary of the French Veolia Group, the world's largest environmental services company, and is a domestic resource recovery specialist that first developed the technology to recycle waste artificial marble into MMA through pyrolysis in 2010. It possesses technology that separates and refines volatile MMA by pyrolyzing powders or waste materials generated during the surface processing of artificial marble and then recovers it.

Through this agreement, LG Chem will secure commercialization opportunities for low-carbon transparent ABS based on chemically recycled MMA and actively cooperate with Veolia R&E in process advancement and research and development to improve the quality of recycled MMA.

Although specific supply volumes cannot be disclosed due to the agreement between the two companies, LG Chem will be able to stably receive recycled MMA necessary for transparent ABS production over the coming years. The two companies plan to discuss various cooperation plans for the recycled MMA business in the future.

This agreement is meaningful as LG Chem, focusing on carbon neutrality and resource circulation activities, joins hands with Veolia R&E, a leading resource regeneration company, to produce sustainable low-carbon products through not only mechanical recycling but also chemical recycling.

LG Chem has created an opportunity to further activate the plastic circular economy by chemically recycling resources that would otherwise be landfilled, incinerated, or discarded. LG Chem plans to apply its eco-friendly premium integrated brand 'LETZero' to transparent ABS produced from recycled MMA and supply it to global home appliance and IT companies.

LG Chem produces about 2 million tons of ABS annually and holds the number one market share worldwide. In particular, LG Chem's transparent ABS is recognized as a high value-added material applied to home appliances, IT devices, and medical kits due to its excellent processability, impact resistance, chemical resistance, transparency, and colorability.

No Gukrae, head of LG Chem's Petrochemical Business Division, said, "This agreement will be an opportunity to advance a sustainable business model for the environment and society. We will continuously lead the ABS market by enhancing not only our existing business competitiveness but also our capabilities in eco-friendly businesses."

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