LG Chem pledges $86.6 million for water desalination device plant in Saudi Arabia

Industry

LG Chem pledges $86.6 million for water desalination device plant in Saudi Arabia

Published: 01 May. 2024, 19:35

SARAH CHEA
chea.sarah@joongang.co.kr

LG Chem Vice President Hyung Hoon, left, poses for a photo with Saudi Environment Minister Abdulrahman bin Abdulmohsen Al Fadley, center, and Alkhorayef Group CEO Mohammad Bin Abdullah Al-Khorayef after signing a partnership deal to build an RO membrane plant in Saudi Arabia by 2026 during during the Saudi Water Forum 2024 held at Hilton Riyadh Hotel & Residences in Saudi Arabia [LG CHEM]

LG Chem will invest up to 120 billion won ($86.6 million) jointly with Alkhorayef Group to build its first overseas water desalination device plant in Saudi Arabia by 2026.

The two companies vowed to commence the construction of the production facility in 2026 to meet increasing local demand for the reverse osmosis (RO) membrane, the device for desalinating water in the Middle East region.

In concept, an RO membrane is similar to a filter in a water purifier but it is made with a polymer that filters the seawater down to the molecular level to remove salts and other impurities.

Under the partnership, they plan to cooperate in sales and marketing activities for RO membranes, as well as exploring new business opportunities within the related water treatment industry.

LG Chem's RO membranes tout a removal rate of 99.89 percent for salts, utilizing the company's unique thin film nanocomposite technology.

Saudi Arabia is the world's biggest buyer of the membranes, accounting for 21 percent of the global demand. The country heavily relies on water desalination for more than 70 percent of its water supply.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr]