LG Chem Pursues Sale of IT Film Material Business

LG Chem is planning to sell its information technology (IT) film materials business.

According to industry sources on the 23rd, LG Chem held briefings on the 21st at its Cheongju and Ochang plants in Chungbuk, which produce display films and polarizers, to announce its intention to sell.

The company intends to exit the IT film materials sector, where profitability has declined due to a surge in supply from Chinese companies.

An LG Chem official explained, "It is true that we are pursuing the sale of the plants, but no concrete decisions have been made yet."

However, the official added, "We plan to streamline uncompetitive, marginal businesses and accelerate selection and concentration on new business areas such as battery materials."

LG Chem is also considering relocating personnel working at the No. 2 Naphtha Cracking Center (NCC) plant in Yeosu, Jeonnam, to other plants.

The NCC is a key facility that produces basic petrochemical feedstocks such as ethylene, often called the "rice of petrochemicals." The ethylene spread (margin), a representative profitability indicator in petrochemicals, has fallen below the break-even point, resulting in ongoing losses.

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