LG Chem announced that in order to acquire raw materials for high value-added products and maintain its leading position in the market, it will invest 287 billion won (US $ 25.746 billion) in 2019 to increase the ethylene production capacity of its large naphtha plant. The output in the next three years will change from the current annual output of 230,000 tons to 1.27 million tons. The expansion will increase LG Chem's total ethylene capacity to 2.43 million tons per year, which is the total output of its Dashan and Lishui plants.
It is reported that due to oversupply and increasing competition from China, which has put pressure on Korean companies, the South Korean government has called for restructuring in the chemical industry. LG Chem will transform one of the two polystyrene production lines at the Yeosu plant to make it a high value-added acrylonitrile-butadiene-styrene by H1-2017.