[Asia Economy (Hongseong) Reporter Jeong Il-woong] LG Chem will establish a pyrolysis oil and next-generation insulation material factory in Seokmun Industrial Complex, Dangjin, Chungnam.
According to Chungnam Province on the 17th, LG Chem will invest 310 billion KRW by 2024 to build the country's first supercritical pyrolysis oil factory using recycled plastics and a next-generation insulation material factory on a 45,000㎡ site in Seokmun Industrial Complex, Dangjin.
At the supercritical pyrolysis oil factory, recycled plastics will be pyrolyzed to extract naphtha, the initial raw material.
Supercritical refers to a special heat source created in a steam state where temperature and pressure exceed the critical point of water, possessing both the solubility of liquids and the diffusivity of gases, making it useful for extracting specific substances.
Through this, the province expects to contribute to local resource circulation and carbon neutrality by inputting 25,000 tons of recycled plastics annually and producing 20,000 tons of pyrolysis oil.
The next-generation insulation material factory will produce aerogel. Aerogel is composed of more than 95% gas and is considered the lightest solid in the world.
Above all, the province explains that aerogel is attracting attention as a next-generation material due to its characteristics of being as light as air, water-resistant, and non-flammable.
Currently, it is mainly used in spacecraft and spacesuits that must withstand high heat when entering the atmosphere, but it is expected that its application will expand as a high-value industrial insulation material for liquefied hydrogen transport and storage in the future.
If the establishment of these factories proceeds as planned, Dangjin City is expected to generate economic effects such as 230.4 billion KRW in local production and 77.1 billion KRW in added value, along with about 150 new jobs.
Additionally, the one-time effect within the province from the factory construction is analyzed to be 415.9 billion KRW, with induced added value of 151.6 billion KRW and employment inducement of 1,596 people.
LG Chem is reportedly considering additional investments in Chungnam depending on the business performance gained from operating the supercritical pyrolysis oil and next-generation insulation material factories in Chungnam.
Accordingly, the province and Dangjin City plan to spare no administrative and financial support to ensure LG Chem can proceed with the project as scheduled.
Kim Tae-heum, Governor of Chungnam Province, said, “I hope LG Chem will grow and develop further in Chungnam so that the company and the region can coexist,” and added, “The province will continue to discover and promote corporate-friendly policies for companies attracted to the region.”
Meanwhile, the large-scale investment attracted by the province from LG Chem is the third this year, following Hyundai Engineering and Hanwha Solutions on the 31st of last month.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
