South Korean chemicals giant LG Chem has set its sights on refining its business portfolio around new growth sectors to stay competitive, as it braces for a year clouded with global uncertainty, the company said Monday.
At a general meeting of shareholders held Monday in Seoul, Vice Chairman and CEO Shin Hak-cheol pledged to accelerate growth in the company’s three key sectors -- advanced materials, life sciences and sustainability -- while enhancing both research and development capabilities and financial resilience.
“Within the three major growth engines, we will set priorities and enhance competitiveness through strategic selection and focus,” Shin said, adding that the plan would position the company against challenges like geopolitical tensions, petrochemical oversupply and sluggish electric vehicle demand that impacted last year's performance.
In 2024, LG Chem posted annual revenue of 48.9 trillion won ($33.3 billion), an 11.4 percent drop from the previous year, with operating profit plummeting 63.7 percent on-year to 916 billion won.
“For battery materials, we will focus on delivering unique value to customers through our technology and product offerings,” Shin said. “In sustainability, we’ll target sectors with strong growth potential, while in pharmaceuticals, we aim for qualitative growth of existing projects and will actively pursue new breakthroughs in late-stage oncology treatment.”
The company explained it has already made strides in its growth engines by starting production at its cathode material production facility in Gumi, North Gyeongsang Province, and by ramping up North American investments in battery materials. It also established a biofuel joint venture and built a chemical recycling plant under sustainability efforts while advancing its oral obesity drug to US clinical trials in the pharmaceuticals sector.
Shin further stressed the company’s resolve to sharpen its R&D edge and strengthen its financial backbone.
“We will accelerate the shift to performance-oriented R&D to boost future competitiveness even in harsh circumstances,” Shin said. “This means reorganizing existing R&D projects and identifying new tasks from a market and customer perspective while enhancing efficiency by optimizing internal resources and speeding up external collaborations.”
Another key agenda item was improving cash flow by fortifying the company's fundamental capabilities.
“We will thoroughly analyze all costs from a zero-based perspective, improve internal efficiency and prioritize strategic investments through optimal resource allocation,” Shin added.
minmin@heraldcorp.com
