LG Chem to set up J/V ABS plant in China

By Nam Kwang-sik
SEOUL, July 21 (Yonhap) -- LG Chem Ltd., South Korea's leading producer of
chemicals, said Tuesday it has signed a deal with state-run China National
Offshore Oil Corp. (CNOOC) on the establishment of a joint venture to build an
acrylonitrile butadiene styrene (ABS) plant in China.
The joint venture, to be named CNOOC & LG Petrochemicals Co., will build the
plant with an annual capacity of 300,000 tons of ABS, a raw material used
primarily in auto parts and electronics.
Construction of the plant, to be built in China's Guangdong Province, is
scheduled for completion in 2013, the company said.
The plant will cost US$370 million to complete, with LG Chem investing $61
million and the remainder to be financed through the joint venture, the South
Korean company said.
LG Chem and CNOOC will each have a 50 percent stake in the joint venture.
ksnam@yna.co.kr
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