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[Alpha Biz= Reporter Kim Jisun] In response to mounting competition from low-cost Chinese petrochemical products, LG Chem has decided to cease alcohol production at its Naju plant in South Jeolla Province. This move comes as the petrochemical industry faces rising logistics and transportation costs, prompting several plant closures across the sector.

According to industry insiders on December 1, LG Chem has stopped operations at its Naju facility, which had an annual production capacity of 200,000 tons of alcohol. The company has held briefings with employees to discuss reassignment options. Staff will be relocated to other departments within the Naju plant or transferred to alternative facilities, such as those in Yeosu or Daesan, after individual consultations.

Consolidation of Alcohol Production at Yeosu
 

Previously, LG Chem operated alcohol production at both its Yeosu and Naju facilities. However, with this consolidation, the company will reduce its overall alcohol production capacity by half and limit production to the Yeosu plant, which has an annual capacity of 200,000 tons.

Broader Challenges for Naju Plant
 

The Naju plant had been producing alcohol, polyvinyl chloride (PVC) plasticizers, acrylic acid, and adhesives. However, due to the downturn in the petrochemical industry, the facility ceased acrylic acid production last December. Now, alcohol production has also been discontinued, reflecting the broader challenges facing the industry.

 

 

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