Sign a Heads of Agreement (HOA) for the establishment of a LA and PLA joint venture
LG Chem and Archer Daniels Midland (ADM) in the US, one of the world's four major grain processing companies, will set up a joint factory to commercialize corn-based bioplastics.
LG Chem announced on Sept. 14 that it had signed a Heads of Agreement (HOA) for the establishment of a Lactic Acid (LA) and Poly Lactic Acid (PLA) joint venture on September 13 (local time) at the ADM headquarters in Chicago, Illinois, in the presence of executives from both companies, including CEO Juan Luciano of ADM and CEO Shin Hak-cheol of LG Chem.
The two companies will sign the definitive agreement in the first quarter of next year and plan to complete construction of the PLA production plant with an annual capacity of 75,000 tons and LA production plant for this purpose in the U.S. by 2025.
LG Chem is the first Korean company to build a PLA plant in the US with integrated production from raw materials to end products.
PLA is a representative biodegradable plastic made using the raw material of LA that is produced by fermenting and refining glucose extracted from corn. Produced from 100% bio-materials, PLA is mainly used for food packaging containers and tableware, comprising an eco-friendly material that is naturally decomposed in several months by microorganisms under certain conditions.