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LG Chem CEO urges caution amid ‘abnormal’ situation

LG Chem Vice Chairman and CEO Shin Hak-cheol (LG Chem)
LG Chem Vice Chairman and CEO Shin Hak-cheol (LG Chem)

South Korean lithium-ion battery maker LG Chem’s leader on Monday highlighted the company’s efforts to preserve cash and reestablish a contingency plan to tackle the “new abnormal,” amid the global fight against the coronavirus pandemic.

While the “new normal” time has been endeavored since the 2008 global financial crisis, the coronavirus pandemic has ushered in an era of “new abnormal,” Shin said citing futurists and economists warning of economic uncertainties.

In a message to the employees, LG Chem Vice Chairman Shin Hak-cheol urged focusing on new opportunities rather than worrying about survival.

The vice chairman shared three tips: Control what you can control, hold onto your cash and don’t mortgage your future.

Among other things, Shin mentioned the need to improve the company’s cash flow in these uncertain times if it is to overcome the current crisis.

“The crisis is returning, and successful companies would have enough cash to overcome it,” he said. “At a time of investments drying up, cash will become even more important.

“The company should reconsider its investment and expenditure plans for this year with a new contingency plan,” he added.

LG’s electric vehicle battery plant in Holland, Michigan, has been suspended since March 25 due to a stay-at-home order from the state government. The plant is expected to stay closed until next Monday.

By Song Su-hyun (