Published : Oct. 24, 2013 - 19:24
LG Chem CEO Park Jin-soo (right) and Versalis CEO Daniele Ferrari shake hands after concluding an MOU at a ceremony held at the Italian chemical firm’s headquarters in Milan on Wednesday (local time). (LG Chem)
LG Chem, Korea’s largest chemical firm, said Thursday that it clinched a deal to supply synthetic resins to leading Italian petrochemical firm Versalis.
Park Jin-soo, CEO of LG Chem, met with Versalis CEO Daniele Ferrari at a ceremony for the memorandum of understanding held at Versalis’ headquarters in Milan on Wednesday (local time).
“LG Chem will take this chance to increase its presence in the European region, and grow into a world-leading chemical firm,” CEO Park said.
One of the major outcomes of the agreement, according to the firm, is that it will supply metallocene Linear Low Density Polyethylene, a synthetic resin, produced on the basis of the Korean chemical firm’s proprietary polymerization technology known as metallocene catalyst.
The mLLDPE is used for agricultural or industrial films such as greenhouse vinyl film, wrappings for electronic goods and even wrappers for food since it is nontoxic, according to an LG Chem official.
The Seoul-based firm said it could supply the resin products worth tens of billions of won to the Milan firm. With the world’s market for the mLLDPE expected to see 8 percent yearly growth, the product’s global trade volume is forecast to grow from 39 million tons in 2012 to 58 million tons in 2017, according to LG Chem.
Versalis is Italy’s biggest petrochemical company, running 14 chemical factories in five European nations including Germany and France. The Italian firm, which produces ethylene, propylene, synthetic resins and synthetic rubber, earned 6.4 billion euros in sales in 2012 and is wholly owned by Eni S.p.A, an Italian multinational oil and gas company.
By Kim Young-won (wone0102@heraldcorp.com)