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LG Chem mulls selling water solutions unit amid prolonged petrochemical slump

Published: 28 Apr. 2025, 22:20

LG Chem logo [SCREEN CAPTURE]

LG Chem is moving to sell its water solutions division, which produces reverse osmosis (RO) membrane filters used for industrial desalination, industry sources said Monday.

According to the sources, the company has reportedly selected Glenwood Private Equity as the preferred bidder and is in negotiations over the deal.

The division generates approximately 200 billion won ($138.6 million) in annual sales, and the sale price is expected to reach around 1 trillion won.

LG Chem entered the RO membrane market after acquiring U.S.-based NanoH2O in 2014 and has built production facilities at its Cheongju plant. It currently ranks second globally in market share after Japan's Toray.

Although LG Chem had announced plans to double the size of the business within five years following the expansion of the Cheongju plant in 2023, it has shifted its focus toward strengthening its financial position amid a prolonged slump in its core petrochemical sector.

The petrochemical industry has been grappling with a prolonged downturn driven by a supply glut from China and increasing uncertainties fueled by U.S. trade tariffs. The company said no decision has been made regarding ongoing discussions.

Yonhap