LG Chem Ltd., South Korea's top chemical maker, said Monday that it would spend some 400 billion won ($352 million) in expanding its output of elastic polymers in a bid to meet growing demand.

The company said the new plant in Daesan, some 140 kilometers south of Seoul, will have a capacity to produce 200,000 tons of elastomer, which will raise its total output of the elastic polymer to 290,000 tons by 2018.

Elastomers are elastic materials mostly used to make seals, high-quality adhesives, shock absorbers and molded flexible parts.

Their production requires specialized catalysts and high-tech manufacturing processes, and currently only four companies in the world make them.

With the output increase, LG Chem will emerge as the world's No. 3 producer.

According to Chemical Market Resources, a market researcher, the global elastomer market was estimated at 2.4 trillion won last year, and is expected to rise to 3.5 trillion won by 2020. (Yonhap)