LG Chem invests 120 billion KRW jointly... Establishes reverse osmosis membrane facility for water treatment filters in Saudi Arabia

Partnering with Alkorayev Group... Localization Starting from 2026

LG Chem is partnering with Saudi Arabia's Alkorayef Group to expand its local water treatment business.

On the 1st, LG Chem announced that it has signed a contract with Alkorayef Group to localize the manufacturing facility for reverse osmosis (RO) membranes, a water treatment filter. Up to 320 million riyals (approximately 120 billion KRW) will be invested in the local production facility through the partnership.

Alkorayef Group is a leading conglomerate in Saudi Arabia's water treatment, refining, energy, shipping, and defense sectors. Alkorayef Water, which operates water supply and sewage development and maintenance (O&M) businesses, is the largest private water treatment company in Saudi Arabia and ranks 14th globally.

LG Chem and Alkorayef Group will begin localizing the RO membrane manufacturing facility in 2026. The two companies plan to expand cooperation into additional water treatment businesses within Saudi Arabia through joint sales and marketing activities and exploring new business opportunities.

Reverse osmosis membranes are water treatment materials used to convert seawater into freshwater, produce industrial water, and reuse wastewater through reverse osmosis. They function as filters that remove chemicals and foreign substances. Reverse osmosis is a method that artificially applies pressure to move a solvent from a higher concentration side to a lower concentration side.

Hyeonghun, Executive Director of RO Membrane Business at LG Chem (from left), Abdulrahman bin Abdulmosen Al Fadli, Minister of Environment, Water and Agriculture of Saudi Arabia, Mohammad bin Abdullah Al Korayef, CEO of Al Korayef Group
[Photo by LG Chem]

Based on the Saudi production plant, the two companies plan to accelerate their penetration into the Middle Eastern market. The Saudi government implements preferential policies for domestically produced products when issuing public water treatment projects, making locally produced products more advantageous in securing contracts. This reduces tariffs and shortens the lead time for Middle Eastern customers to order and receive products.

Saudi Arabia is the largest market for RO membranes used in seawater desalination, accounting for 21% of global market demand. Over 70% of Saudi Arabia's water supply depends on seawater desalination. The importance of stable water supply and RO membranes is increasing for national development projects such as the construction of Neom City under the 'Vision 2030' initiative.

Last year, LG Chem invested 124.6 billion KRW to expand its RO membrane factory with an annual production capacity of 400,000 units at its Cheongju plant site and announced plans to double its RO membrane business within the next five years. The amount of water desalinated by LG Chem worldwide is 1.86 billion tons annually (5.1 million tons per day), which is enough for more than 46 million people based on the global average daily water usage of 110 liters per person.

Hyung Hoon, Executive Director in charge of the RO membrane business, said, "Since entering the RO membrane business in 2014, LG Chem has led the global market with outstanding technology and a global sales network. By cooperating with Alkorayef Group, we will target the Saudi and Middle Eastern markets, where rapid growth in the water treatment market is expected, and further solidify our position as a leading RO membrane company."