[Alpha Biz=(Chicago) Reporter Kim Jisun] The LG Chem has begun restructuring its business. Instead of cleaning up businesses that are not profitable or whose future is uncertain, the company intends to reorganize them around the three major growth engine businesses mentioned by Vice Chairman Shin Hak-chul. Especially in the future industry, it is a strategy to accelerate growth by readjusting the details.

The LG Chem said in an email to executives and employees of the petrochemical business division on the 19th in the name of Roh Kuk-rae, head of the petrochemical business division, "We will boldly and preemptively reform the structural reform of the marginal business." "We cannot delay restructuring of marginal projects that are not competitive among general-purpose businesses," he said. "We will reorganize our business structure through suspension of long-term operations, withdrawal of business, and trading assets (sale of stakes and establishment of joint ventures), and will also push for the relocation of human resources accordingly."

LG Chem's petrochemical division, which posted 21.7234 trillion won in sales last year, has been worsening its performance, posting an operating loss of 50.8 billion won in the first quarter following an operating loss of 165.9 billion won in the fourth quarter of last year. Nearly 5,000 executives and employees from home and abroad work in this sector.

In addition to the petrochemical business, The LG Chem decided to sell its in-vitro diagnostic medical device division of the life sciences division to Glenwood Private Equity on the 9th. Sold for 150 billion won, the unit is mainly engaged in diagnostics. 

 

An official of LG Chem explained, "We decided to organize the parts that are not related to global new drug development and focus more on development."

 

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