LG Chem has announced its plans to expand its business by increasing the capacity of the Cheongju plant, which produces reverse osmosis (RO) membranes. The company is set to invest KRW 124.6 billion by July 2025 to add a facility capable of producing 400,000 RO membranes annually to the Cheongju plant.

This expansion is expected to desalinate around 1.57 billion tons of water annually, equivalent to 4.32 million tons per day. The purified water can cater to approximately 16 million people, which constitutes about one-third of the entire Korean population.

LG Chem aims to double its current KRW 200 billion RO membrane business within the next five years through this expansion. Apart from the existing seawater desalination market, LG Chem also targets the growing industrial RO membrane market, including industrial water production and wastewater reuse, as demands in these sectors are rapidly increasing.

The expanded RO membrane plant will incorporate smart factory concepts, integrating AI and digital transformation (DX) automated processes. With real-time anomaly detection, quality, and productivity management, this will enhance production speed by over 25% compared to conventional facilities. The Cheongju RO membrane plant is set to operate on 100% renewable energy by 2030, including the expansion facility.

In addition to the expansion, LG Chem signed an investment agreement with North Chungcheong Province and Cheongju City to foster mutual growth in the region. LG Chem plans to stimulate local economic activity by sourcing materials and equipment locally during the expansion process. In return, the local authorities will provide administrative support, including permits, for the plant's expansion.

RO membranes are critical for various water treatment processes such as desalination, industrial water production, and wastewater reuse. Since its acquisition of NanoH2O in 2014, LG Chem has been consistently growing in the water treatment business and currently ranks as the second-largest player in the global seawater desalination RO membrane market.

According to Global Water Intelligence (GWI), a prominent water treatment research institute, the water treatment filter market is projected to grow from KRW 5.3 trillion in 2019 to KRW 6.4 trillion in 2024, with an average annual growth rate of 3.9%.

Hak Cheol Shin, CEO of LG Chem, emphasized, "The additional investment in Cheongju, our RO membrane production base, will significantly expand our production capacity and establish us as a global leader in RO membrane technology." He further added that the company intends to provide top-tier water treatment solutions to a broader global customer base and concurrently achieve growth in related sectors such as lithium extraction and CO₂ separation, aligning with prevailing global megatrends.

 

Source: lgchem.com

 

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