LG Chem eyes W60tr in sales by 2030

LG Chem Ltd., South Korea's leading chemical maker, said Tuesday it aims to boost its sales to 60 trillion won ($50.1 billion) by 2030 as it accelerates its push for a green transition with a focus on renewable energy and advanced materials.

Unveiling its mid- to long-term business plans, LG Chem said in regulatory filings it is eyeing annual sales of 40 trillion won by 2026.

The target figures exclude its two subsidiaries -- the battery-making unit LG Energy Solution Ltd. and LG FarmHannong Co. that makes crop protection products and fertilizers.

LG Chem said it will aim to generate 12 trillion won and 30 trillion won in sales by 2026 and 2030, respectively, from its three core businesses -- bio and renewable energy materials, battery materials and pharmaceuticals.

For 2022, it has set the annual sales target at 27 trillion won, up 4 percent from last year, including 20.7 trillion won from petrochemicals and 6 trillion won from advanced materials, the company said in a press release. The figure excludes the 19.2 trillion-won target set for LG Energy Solution.

LG Chem also plans to spend 4.1 trillion won on capital expenditures this year and aims to maintain the amount over the next eight years, it said.

In the fourth quarter, LG Chem swung to the black from a year earlier, posting 336.8 billion won in net income, compared with a loss of 343.4 billion won.

Operating profit reached 748.4 billion won for the October-December period, more than sixfold from a year ago. Sales rose 23 percent to 10.94 trillion won.

The operating profit was 22.6 percent lower than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

For all of 2021, the company booked a combined 3.95 trillion won in net profit, growing nearly sixfold from the previous year.

The cumulative operating income came to 5.02 trillion won, while the annual sales stood at 42.65 trillion won. (Yonhap)