LG Chem announced on the 27th that it achieved sales of 30,575 billion won and operating profit of 2.35 trillion won in 2020.
Sales increased by 9.9% and operating profit by 185.1% compared to the previous year. Annual sales exceeded 30 trillion won for the first time since its inception.
Last 4Q results were ▲Sales 8,855.8 billion and ▲Operating Profit 673.6 billion won. Sales increased 19.9% year-on-year, reaching an all-time high on a quarterly basis, and operating profit turned to black compared to the same period last year.
Regarding 2020 results, Chai Chai, vice president of LG Chem’s CFO, said, “Even in the crisis of the corona pandemic, sales grew 10% year-on-year, exceeding 30 trillion won for the first time. It was a year that produced meaningful results of increasing profits,” he said. “In particular, in the fourth quarter, there were also achievements in strengthening competitiveness for growth, such as the successful spin-off of the battery business and sustained profitability.”
LG Chem has set its sales target this year to 37,300 trillion won, a 24.1% increase from the previous year.
Regarding this year’s business plan, CFO Bae Chae said, “▲ Battery materials, ▲ Sustainable solutions, ▲ e-Mobility materials, ▲ Global new drug development. We will create a company that can take a leap forward by focusing on it.”
Looking at the specific business outlook and strategic direction by business division, the petrochemical division is concerned about supply growth due to the opening of new facilities in Northeast Asia, but the global economy is expected to recover and demand from major industries is expected to improve gradually.
We plan to lead the field of eco-friendly solutions such as biodegradable materials and recycled products related to sustainability, and will review active investments to diversify core markets based on the manufacturing competitiveness of major products such as ABS, NBL, and POE. It also plans to seek opportunities to enter emerging markets, such as the complex business to secure an additional growth base.
The high-tech materials division is expected to increase demand in downstream markets such as batteries, OLED, and IT, and plans to actively promote additional battery materials such as anode binders and heat-dissipating adhesives along with securing production capacity to intensively foster high-nickel battery materials. In addition, it is planning to continue to expand the e-Mobility material business such as engineering materials and automotive display materials to keep pace with the trend of automobile weight reduction and electrification.
The Life Sciences division is expected to grow more than 10% in sales this year thanks to the start of supply of UNICEF such as new product Ufolio (Polio Vaccine) and expansion of existing businesses such as Yvesar (Filler). Promote the establishment of a new drug portfolio equipped with
Energy Solutions is expected to continue to grow in the electric vehicle market and expand the ESS market centering on large power grids in accordance with the eco-friendly policies of major countries. It is expected. It also plans to strengthen future preparations through e-Platform business, development of next-generation batteries, and establishment of cooperative relationships.
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