"Capture the North American Market"... LG Hausys and Lotte Chem Expand Engineered Stone Business

Engineered stone products of Belenko in Turkey, acquired by Lotte Chemical last year

[Asia Economy Reporter Hwang Yoon-joo] LG Hausys and Lotte Chemical are accelerating their efforts to target the global artificial marble (acrylic-based artificial marble) and engineered stone markets.

According to industry sources on the 14th, LG Hausys is scheduled to complete the expansion of its third engineered stone production line at its Georgia plant in the United States next month. Once the expansion is completed, LG Hausys's production capacity in the North American region will increase by 50% to 1.05 million m².

Engineered stone made from 99.9% high-purity natural quartz is a next-generation artificial marble that preserves the texture of natural marble while overcoming its vulnerability to scratches. It is considered a premium product compared to artificial marble made from chemical resin (acrylic-based artificial marble).

As interior market demand for artificial marble products such as dining tables and washbasins grows, especially in North America and Europe, demand is increasing. Recently, products capable of curved finishes have emerged, diversifying their applications as interior and exterior materials in buildings such as hotels and hospitals. North America, in particular, is regarded as the most competitive market for engineered stone.

According to industry data, the North American engineered stone market has grown from $1.4 billion in 2015 to $1.8 billion in 2017 and $2.0 billion in 2019. LG Hausys holds about a 10% market share in the North American engineered stone market, ranking fourth after Cosentino, Caesarstone, and Cambria. LG Hausys plans to increase its market share by strengthening marketing activities such as securing new clients alongside the expansion of its U.S. plant.

Lotte Chemical, which is strengthening its specialty business from mainly general-purpose products through integration with Lotte Advanced Materials, is also actively targeting the North American market. Lotte Chemical first launched its acrylic-based artificial marble brand in 1992 but only entered the engineered stone market in 2009. As the real estate market in North America boomed and demand for building materials increased, Lotte Chemical expanded its business last year by acquiring Belenko, Turkey's number one engineered stone company.

This year, Lotte Chemical participated for the first time under its own name in KBIS 2020, the largest kitchen and bathroom exhibition in North America held in Las Vegas, USA. A Lotte Chemical official stated, "We will actively target the Americas market with differentiated high value-added products that satisfy both design and functionality," adding, "Furthermore, as the first domestic product to obtain the Korea Standards Association (KSA) 'Radon Safety Product Certification,' we will provide safe products."