[Asia Economy Reporter Kim Hyewon] LG Chem has established a production base for NB latex, the key raw material for nitrile gloves, in a triangular setup across Korea, China, and Malaysia. Anticipating a market exceeding 12 trillion KRW driven by demand for over 400 billion nitrile gloves in 2024, the company aims to secure market leadership by achieving an annual production capacity of more than 1 million tons across the three regions.
LG Chem announced on the 12th that it recently established and commenced full-scale operations of an NB latex plant with an annual capacity of 100,000 tons at its Yongxing subsidiary in Ningbo, China. By the first half of next year, the company plans to complete an additional expansion of 110,000 tons at this plant alone, increasing total production capacity to 210,000 tons annually.
In Malaysia, LG Chem is building a plant with an annual capacity of 240,000 tons through a joint venture with the local state-owned petrochemical company Petronas Chemical Group, targeting mass production by the first half of 2023. Notably, Malaysia accounts for over 70% of nitrile glove production, and LG Chem is evaluated to have secured a favorable position in collaboration with customers and product supply through its local production base.
The NB latex production capacity at the domestic Yeosu plant will be increased to 280,000 tons annually. Expansion work of 110,000 tons began last year, with commercial operation targeted by the first half of next year.
Nitrile gloves, which replace traditional natural rubber gloves, have superior strength and chemical resistance, leading to a surge in use for medical purposes to prevent COVID-19 infection. Even after the end of the COVID-19 pandemic, they are recognized as essential hygiene products, and demand is expected to remain steady for industrial and cooking uses. According to the Malaysian Rubber Glove Manufacturers Association (MARGMA), demand for nitrile gloves is expected to continue growing at an average annual rate of over 19%, reaching 410.9 billion gloves and a market size of approximately 12 trillion KRW by 2024.
No Gukrae, Head of LG Chem's Petrochemical Business Division, stated, "By localizing production at key bases, we will strengthen our global customer responsiveness and lead the NB latex market, which has become a megatrend in the hygiene product sector, by discovering various new markets."
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