LG Chem sets $100 million to expand its ABS factory

LG Chem is investing $100 million to expand its high value-added chemicals production capacity, the company said Monday. It is expanding its acrylonitrile-butadiene-styrene (ABS) factory in China’s Guangdong Province from the existing 150,000 tons to 300,000. LG Chem currently holds the largest market share, 21 percent, in the global ABS market and the expansion is expected to raise its dominance to 26 percent, the company said in a statement. ABS is a high-functional plastic known for its strong heat and impact resistance. It is used to make LEGO toys, automobiles and home appliances. As China accounts for about 50 percent of the world’s ABS demand, the company aims to strengthen its foothold in the Chinese market to solidify its place as the world’s largest ABS provider. The investment also grants bigger management rights to LG Chem over its Chinese factory established in limited partnership with China National Offshore Oil Corporation.