LG Chem Shin Hak-cheol "Petrochemical Crisis, Long-term Growth Opportunity" (Comprehensive)

Met with reporters at the Asia Petrochemical Conference on the 31st
Amid consecutive profit declines and petrochemical downturn forecasts
Credit rating also downgraded
"We will turn the crisis into an opportunity," commitment expressed

Shin Hak-cheol, Vice Chairman of LG Chem, is answering questions from reporters at the 2024 Asia Petrochemical Conference held at the Grand InterContinental Seoul Parnas in Gangnam-gu, Seoul. Photo by Joint Press Corps

Shin Hak-cheol, Vice Chairman of LG Chem, stated that despite the crisis in the petrochemical industry, "there will definitely be growth opportunities in the long term."

Vice Chairman Shin made these remarks on the 31st before the '2024 Asia Petrochemical Conference (APIC)' held at the Grand InterContinental Seoul Parnas Hotel in Gangnam-gu, Seoul. He said, "At the CEO breakfast meeting, we exchanged general opinions on the global market conditions," adding, "The main discussions were about how to find growth opportunities and how to strengthen competitiveness. It was a positive conversation." Regarding the recovery of the NCC (Naphtha Cracking Center) operating rate, he said, "It seems to be gradually recovering, but it is difficult to specify a visible timeline."

Recently, global credit rating agencies have been downgrading LG Chem's credit rating one after another. This is due to the oversupply of petrochemicals originating from China, as well as the ongoing global high interest rates and recession. On the 29th, S&P Global downgraded the credit outlook of LG Chem and its battery subsidiary LG Energy Solution from 'stable' to 'negative.' In February, another credit rating agency, Moody's, also revised LG Chem's credit outlook from 'stable' to 'negative.' Despite these negative outlooks, Vice Chairman Shin is interpreted to have expressed expectations for an industry rebound and a determination to turn this crisis into an opportunity.

As the Chairman of the Korea Petrochemical Industry Association, Vice Chairman Shin said in his opening remarks, "At a time when uncertainties are increasing due to global oversupply, weak demand, and the spread of protectionism, our close cooperation is more necessary than ever," adding, "We aim to discuss sustainable growth opportunities for the Asian petrochemical industry under the theme of 'Pioneering the Path in the Era of Sustainability.'"

In his opening address, Vice Chairman Shin proposed ▲ the development of a cooperative response system among the seven APIC member countries ▲ collaboration to establish a long-term competitive model for carbon high value-added products. He stated, "Whether the Asian petrochemical industry overcomes this complex crisis and leaps forward or falls into a low-growth trap depends on the response of the seven APIC countries going forward," and added, "I hope this APIC will further strengthen cooperation among our countries and greatly contribute to building a cooperative system and sustainable development of the Asian petrochemical industry."

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