The move, coupled with its constant increase in overseas contracts, is part of a bid to prepare for the arrival of the “fourth industrial revolution.”
LG Chem is a Korean manufacturer of basic materials, automotive batteries, information technology and electronics materials.
|LG Chem naphtha cracking center in Yeosu, South Jeolla Province (LG Chem)|
Also, through a separate investment of 200 billion won, LG Chem aims to build a production facility for new materials that are “thermal insulating, ultra-light and highly intense” in Dangjin, South Chungcheong Province.
This comes in light of LG Chem’s pledge to increase R&D investment by at least 10 percent. It spent a record-high 900 billion won in R&D in 2017.
The capital expenditure pledge was revised up from 3.8 trillion won thanks to the early execution of investment in automotive battery production, according to Jung Ho-young, chief financial officer of LG Chem. The car battery sector saw a record-high order backlog worth 60 trillion won as of end-June.