LG Chem and CJ CheilJedang to Pursue Joint Venture in Bio Nylon Business

Production of Eco-Friendly Materials from Fermented Oksusu and Satangsusu

LG Chem is partnering with CJ CheilJedang to establish a bio-nylon joint factory and target the eco-friendly market. Two leading companies in the food, bio, and chemical sectors will, for the first time in Korea, produce bio-nylon from raw materials to finished products, securing stable business competitiveness.

On the 14th, the two companies announced that they signed a Heads of Agreement (HOA) for the establishment of a joint venture for the production and sale of eco-friendly nylon based on bio raw material (PMDA) at the LG Twin Towers in Yeouido.

Shin Hak-cheol, Vice Chairman of LG Chem (right), is taking a commemorative photo with Choi Eun-seok, CEO of CJ CheilJedang, at the signing ceremony of the basic agreement for the bio-nylon joint venture at LG Twin Towers in Yeouido on the 14th. (Photo by LG Chem)

CJ CheilJedang will produce PMDA using microbial precision fermentation technology and joint development technology, while LG Chem will polymerize it to produce and sell bio-nylon.

Bio-nylon (Bio-PA) has high heat resistance and durability like petroleum-based nylon, making it applicable in various fields such as textiles, automobiles, electronic devices, and fibers. It is especially produced from bio raw materials such as corn and sugarcane, which significantly reduce carbon emissions. The raw material for bio-nylon, PMDA, is produced by fermenting corn, sugarcane, and other sources.

Due to recent global eco-friendly policies and the mandatory disclosure of carbon emissions 'Scope 3' in the US and Europe, eco-friendly products like bio-nylon are expected to continue growing. The global market demand for bio-nylon is projected to grow from 400,000 tons in 2023 to 1.4 million tons in 2028, recording a high average annual growth rate of 29%.

Shin Hak-cheol, Vice Chairman of LG Chem, said, "It is significant that leading companies in each field are joining hands and cooperating to transition to a low-carbon business structure," adding, "We will continue to promote the plastics business using eco-friendly, low-carbon raw materials and establish ourselves as a company demonstrating leading leadership in carbon reduction."