High value synthetic resin for IT products
- 30th, Strategic Partnership with Violia R&E
To secure stable supply of chemically recycled MMA (methyl methacrylate)
Veolia R&E : Korea’s largest recycled MMA producer possessing patented technology for recovering MMA, a raw material for production of transparent ABS, through pyrolysis of waste artificial marble
- Support for joint research and facility investment to improve the quality of recycled MMA
- Kug Lae Noh, President of the Petrochemicals Company
“Opportunity to further advance a sustainable business model for the environment and society. We will continue to lead the ABS market by further enhancing our competitiveness in existing businesses as well as our eco-friendly business capabilities”
LG Chem is starting to produce transparent ABS (high value-added synthetic resin) using a chemically recycled raw material.
LG Chem announced that it had signed a 'Strategic Partnership (MOU) for stabilizing the supply of recycled MMA (methyl methacrylate) and upgrading its quality' with Veolia R&E, the largest producer of recycled MMA in Korea, on 30th, at the LG Twin Tower in Yeouido, Seoul,
MMA, the core raw material of transparent ABS, is a colorless and transparent liquid compound and is widely used as raw material in various industries such as automotive, home appliances, IT devices and building materials such as artificial marble.
Veolia R&E is a subsidiary of France's Veolia Group, the world's largest environmental service company (water treatment, waste, and energy). They are a domestic resource recovery company that developed the world's first technology to pyrolyze waste artificial marble and recycle it into MMA in 2010. They have the technology to separate, refine, and recover MMA, a volatile substance, through pyrolysis using powder or waste materials that are created when processing the surface of artificial marble.
Through this MOU, LG Chem will secure an opportunity to commercialize low-carbon transparent ABS based on chemically recycled MMA, while also being able to actively cooperate with Veolia R&E for process technology enhancement and R&D to improve the quality of recycled MMA.
Although the specific quantity and cooperation period cannot be disclosed in accordance with the MOU between the two companies, LG Chem is expected to be able to receive a stable supply of recycled MMA required for transparent ABS production for the next several years. The two companies plan to discuss various ways of cooperation on the recycling MMA business in the future.
This MOU is meaningful in that LG Chem, which is focusing on carbon neutrality and virtuous cycle of resources, collaborates with Veolia R&E, a leading resource recycling company, to produce sustainable low-carbon products not only through mechanical recycling but also through chemical recycling.
Through the MOU, LG Chem is able to further revitalize the opportunity to create a plastic-circulating economy by chemically recycling resources that are usually disposed of in landfills or through incineration.
LG Chem plans to apply its eco-friendly premium integrated brand ‘LETZero’ to the transparent ABS produced using recycled MMA and supply it to global home appliances and IT companies.
LG Chem produces about 2 million tons of ABS annually and has the world's most advanced technology, ranking first in global market share. In particular, LG Chem's transparent ABS has excellent processability, impact resistance, and chemical resistance, but also has excellent transparency and colorability, putting it on spotlight as a high value-added material that can be applied to home appliances, IT devices, and medical kits.
Kug Lae Noh, President of LG Chem’s Petrochemicals Company, stated, “This MOU will serve as an opportunity to further advance a sustainable business model for the environment and society. We will continue to lead the ABS market by further enhancing our competitiveness in existing businesses as well as our eco-friendly business capabilities.”
According to industry research, the global market demand for transparent ABS is expected to grow from around 270,000 tons in 2021 to around 360,000 tons in 2026, growing at an annual average rate of more than 6%.