LG Chem has joined hands with biodiesel company Dansuk Industrial to establish a joint plant to secure bio-materials required for the production of eco-friendly products.
LG Chem announced on Sept. 2 that it had signed a Heads of Agreement (HOA) for the establishment of a hydro-treated vegetable oil (HVO) joint venture on September 2 at the Dansuk Industrial headquarters in Siheung, Gyeonggi-do.
Executives from both companies, including chief Noh Kook-rae of LG Chem's petrochemical business division and Chairman Han Seung-wook of Dansuk Industrial, attended the signing ceremony.
The two companies signed the definitive agreement in the first quarter of next year and aim to complete the construction of the production plant by 2024. This is the first time that an HVO plant will be built in Korea, and this plant is one of 10 new plants at the Daesan Complex recently announced by LG Chem.
HVO is a next-generation bio-oil produced through hydro-treatment of vegetable raw materials such as waste cooking oil and palm by-products. It has superior non-freezing properties even at low temperatures, so it can be used not only for vehicles but also for aviation fuel and petrochemical raw materials.