Input 2021.01.27 15:47 | Revision 2021.01.27 16:25
First annual surplus in battery business
LG Chem recorded sales of over 30 trillion won last year, the highest annual performance. The battery business recorded the first surplus on an annual basis.
LG Chem (051910)Announced on the 27th that last year’s consolidated operating profit increased 185.1% year-on-year to 2.353.2 billion won. Sales amounted to 30 trillion won, an increase of 9.9% over the same period. This is the first time since its inception that LG Chem’s annual sales exceeded 30 trillion won.
Looking at the results of the fourth quarter of last year alone, the operating profit was 6736 billion won and the sales recorded 8.885.8 billion won. Operating profit turned to black and sales increased 19.9% year-on-year.
LG Chem has set its sales target this year to 37.3 trillion won, an increase of 24.1% from last year. Target sales by business are ▲Petrochemical 1.4 trillion won ▲Advanced materials 4.4 trillion won ▲Life science 800 billion won ▲Energy solutions 1.89 trillion won ▲Palm Hannong 700 billion won.
“This year, we will take a leap forward by concentrating our capabilities and resources on the four key business areas and new growth engines, including battery materials, sustainable solutions, e-Mobility materials, and global drug development,” said vice president Bae Chai. Said.
The petrochemical division is concerned about supply growth due to the opening of new capacity expansions in Northeast Asia, but the global economy is expected to recover and demand from major industries is expected to improve gradually.
LG Chem plans to lead the field of eco-friendly solutions such as biodegradable materials and recycled products related to sustainability. Based on the manufacturing competitiveness of major products such as high value-added synthetic resin (ABS), NB latex, and polyolefin elastomer (POE), we are reviewing active investments to diversify key markets. It is also planning to seek opportunities to enter emerging markets such as the complex business to secure a foundation for further growth.
The high-tech materials division is expected to see an increase in demand from downstream markets such as batteries, OLED, and IT. In addition to securing production capacity to foster high-nickel battery materials, LG Chem plans to actively promote additional battery materials such as anode binders and heat-dissipating adhesives. In addition, it plans to continue expanding its immobilization material business, such as engineering materials and automotive display materials, in line with the trend of automobile weight reduction and electrification.
The life science division is expected to grow more than 10% in sales this year thanks to the start of supply to UNICEF of a new product, Ufolio (Polio Vaccine), and expansion of existing businesses such as Yvear (Filler). An official from LG Chem explained, “We will expand our R&D investment to strengthen our core capabilities in new drug development and build a new drug portfolio with global competitiveness.”
LG Energy Solutions, which is in charge of the electric vehicle battery business, announced that it is expected to continue the growth of the electric vehicle market and expand the energy storage system (ESS) market centered on the large power grid in accordance with the eco-friendly policies of major countries. An official at LG Energy Solutions said, “The sales of electric vehicles are expected to grow by more than 50% this year due to the increase in sales of electric vehicles following the launch of new electric vehicle models and the increase in overseas orders for ESS,” said “The future through e-Platform business and next-generation battery development. “We plan to strengthen our preparations.”