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Chemical Industry


KOREAN LG CHEM TO SPEND $95 MN TO DOUBLE WATER TREATMENT BIZ


LG CHEM PLANS TO ADD AN RO MEMBRANE FACTORY IN SOUTH KOREA, TARGETING THE
INDUSTRIAL WATER TREATMENT MARKET

By Jae-Fu Kim Aug 28, 2023 (Gmt+09:00)

2 Min read



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LG Chem secures exclusive deal for Israeli desalination project



LG Chem's water filter business thrives amid high demand in Middle East



Reverse osmosis membrane filter (Courtesy of LG Chem)
South Korea’s top chemicals maker LG Chem Ltd. plans to spend 124.6 billion won
($94.5 million) on increasing its water treatment material output capacity to
double the business in the next five years.

LG Chem said on Monday it decided to invest the money to add a factory in South
Korea with an annual capacity of 400,000 reverse osmosis (RO) membranes, which
can desalinate 1.6 billion tons of water a year. That would be enough for 16
million people, about a third of South Korea’s population, according to the
company.

RO membranes, which are used to remove salt and other pollutants from water,
play a key role in wastewater treatment units.

LG Chem aims to double its RO membrane business, which is expected to generate
sales of 200 billion won this year, in the next five years through the plant to
be built in its production complex in Cheongju, about 130 kilometers (81 miles)
south of Seoul.

“We plan to significantly raise production capacity in Cheongju, the RO membrane
production base, through additional investment, to actively target the
industrial (water treatment) market following the seawater desalination sector,”
said LG Chem Vice Chairman and CEO Shin Hak-Cheol in a statement.




“We are also set to develop the business into one -- meeting the global
megatrend by expanding it to related sectors such as lithium extraction and CO2
separation in the future.”

SMART FACTORY

LG Chem, the world’s No. 2 RO membrane producer, started the business in 2014 by
acquiring NanoH2O, a US manufacturer of the seawater desalination material.

The world’s water treatment filter market is forecast to rise to 6.4 trillion
won next year from 5.3 trillion won with an average growth of 3.9% a year, said
LG Chem, citing industry tracker Global Water Intelligence.

LG Chem plans to build the new plant as a smart factory with artificial
intelligence and an automated production process based on digital
transformation. The AI is set to detect abnormalities in manufacturing lines and
control quality, ramping up production speed by more than 25% compared to
existing facilities.

The company will operate all the RO membrane factories, including the new one in
Cheongju, soley with renewable energy by 2030.

Write to Jae-Fu Kim at hu@hankyung.com
 
Jongwoo Cheon edited this article.
#Korea #LG #water treatment #seawater #desalination #RO membrane #investments
#environment #AI #DX #smart factory #plant

More to Read
 * Chemical Industry
   LG Chem secures exclusive deal for Israeli desalination project
   
   May 18, 2023 (Gmt+09:00)
   
   2 Min read
 * Water technology
   LG Chem's water filter business thrives amid high demand in Middle East
   
   May 20, 2021 (Gmt+09:00)
   
   3 Min read

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