This initiative will focus on customers manufacturing essential materials such as vinyl and packaging, which are based on ethylene and propylene. Starting from shipments made in May, the company will temporarily reduce prices by 100,000 to 200,000 won per ton, depending on the proportion of naphtha used and product pricing. Customers have already been informed, and the program is set to begin in June.
LG Chem aims to alleviate the cost burden on small clients and contribute to reducing prices for essential materials. This move is seen as a response to the government's proactive establishment of naphtha subsidies and guidance for cooperation with small businesses.
Kim Dong-chun, CEO of LG Chem, stated, "This support decision was made as a part of our commitment to cooperative growth with small clients who have consistently trusted our product quality and supply stability despite various challenges. We also extend our deep gratitude to the government for its unprecedented swift support to domestic petrochemical companies facing difficulties due to supply and price surges of naphtha."
Meanwhile, LG Chem is investing 15 trillion won in research and development by 2023 to cultivate future core businesses in semiconductor, mobility, robotics materials, and cancer drugs, as part of its transition to an AI-based high-value materials company.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.