LG Chem Vice Chairman and CEO Shin Hak-cheol (right) and ADM Chairman and CEO Juan Luciano pose after signing an agreement at ADM’s global headquarters in Chicago, Monday. The two will form a US joint venture to produce 75,000 tons of corn-based bioplastic per year starting 2025. (LG Chem)
LG Chem said Tuesday it will form a joint venture with Archer Daniels Midland, one of the world’s largest corn processors, to produce 75,000 tons of corn-based bioplastic per year starting in 2025.
According to an agreement signed Monday between South Korea’s leading chemical firm and the Chicago-based agriculture company, a joint venture will be launched in early 2022 in the US to produce corn-based lactic acid and poly lactic acid, a biodegradable plastic used for food packaging, disposable silverware, clothing and upholstery.
“The establishment of a joint venture with ADM would be the beginning of a new journey toward a sustainable business structure for the benefit of the environment and society,” LG Chem Vice Chairman and CEO Shin Hak-cheol was quoted in a press release.
A company official added that LG Chem will the first Korean company to build a PLA plant with integrated production from raw materials to end products.
According to LG Chem, global demand for bioplastic and biopolymer is projected to grow from $10.7 billion this year to $28.7 billion by 2026.
The partnership will allow LG Chem to secure a stable supply of raw materials and accelerate the firm’s effort to commercialize bioplastic to tackle environmental issues such as climate changes and waste plastic.
By Kim Byung-wook (email@example.com