KOREA (SOUTH): LG Chem to set up technical service centers in US, Europe
LG Chem said Monday (11 October 2021) that it will build two technical service centers ― one in the United States and one in Europe ― as part of efforts to better serve its customers and partner companies worldwide. The two service centers, costing KRW 120 billion (USD 100 million) combined, will be responsible for offering solutions on product development, quality improvement and other technical issues concerning petrochemical products made by LG Chem. The construction of the two facilities will be completed, and they will be fully operational, by 2023.
"They will certainly help us enhance our global market position," the petrochemical unit of LG Group said, noting that the U.S. and Europe combined account for more than 20 percent of its global customers. The company also said that the facilities will be critical to form a four-way service network linking Korea and China, as well as the U.S. and Europe. Since 1995, LG Chem has been operating a technical service center in Osan, Gyeonggi Province. Currently it is building a second one in the eastern Chinese region of Huadong, which is expected to be completed by next year.
The U.S. service center will be located in Ohio, which LG Chem assessed as "an optimal location" for convenience in logistics and transportation. The U.S. state is also home to many LG customers, such as auto parts manufacturers and interior design product suppliers. The service center will be a three-floor building on 7,600 square meters of land. A wide range of equipment will be ready, as well as teams of experts on compression and injection molding, plus 70 researchers, to meet the specific demands of customers.
Frankfurt in Germany has been picked to host the European service center, after considering its convenience in terms of transportation and its accessibility to regional customers. The city is home to LG Chem's European sales headquarters, too. The service center will have relevant equipment, experts and researchers in accordance with customer demands.
LG Chem in the long term plans to nurture the Korea service center to oversee international technical support. The China service center will focus on helping to stimulate the regional economy, job creation and cooperation with regional communities. The U.S. and Europe centers will be used to recruit skilled workers and expand LG Chem's lineup of eco-friendly products.
"The technical service centers indeed will be essential for us to take the initiative in the global market," LG Chem said. Meanwhile, LG Chem will spend KRW 60 billion in the U.S. to produce acrylonitrile butadiene styrene (ABS), a highly functional plastic. The plant will be in Ohio, with an annual capacity of 30,000 tons once constructed in 2023.
Source: Daily “The Korea Times”, Seoul; 11 Oct 2021
(Syed Rashid Ali, Karachi, Pakistan)