LG Chem "To hit KRW 36.4 trillion sales in 2020…Confidence in additional KRW 5 trillion for battery”
Park Jung Il | comja77@ | 2018-03-12 10:53:26
Park Jin-soo, vice chairman of LG Chem, stated that he will achieve annual average growth rate of more than 15% by increasing sales of 5 trillion won over the next two years only in battery business including electric car battery. LG Chem plans to increase its sales target by KRW 20 trillion to KRW 36.4 trillion, which will lead to rapid growth of new growth businesses. To this end, LG Chem plans to increase facility investment, research and development (R & D).
Vice Chairman Park stated that the company will hold sales of KRW 36.4 trillion in 2020, which will record an annual average growth rate of 15% or more from this year after holding a press conference at Daesan Factory in Seosan-si, Chungcheongnam-do.
Considering LG Chem`s sales last year was KRW 25.69 trillion, it is an aggressive goal to increase over KRW 10 trillion in two years.
It is also very challenging compared with the growth rate of global chemical companies from 2010 to 2016. During this period, BASF Germany grew at an average annual rate of 0.5%, while US Dow Chemical and Mitsubishi Chemical of Japan recorded a -1.8% growth rate. During the same period, LG Chem`s growth rate was 0.9%.
Meanwhile, Vice President Park cited batteries for electric cars as the reason for this growth. He said, "Half of the KRW 10 trillion (sales increase) is on the battery side. I think it is fairly accurate because a considerable portion is on the car battery side and there are quite a lot of orders." Considering that LG Chemical`s annual sales of LG Chem`s annual sales reached KRW4.5606 trillion last year, its aggressive goal is to increase sales more than double within three years. As of the end of last year, the automobile battery order backlog is worth W42trn. "The atmosphere is getting better, but I`m careful to say what`s going on right now," Park said. "It`s a subsidy (in China in 2020) There will be a chance when this is over."
In the case of biotechnology sector, which is another growth engine, we will work on building infrastructures and systems that will carry out our future strategy, and aim to enter the top 10 in 10 years. We will strengthen our profitability by focusing on high value-added products Introduced. He added that in the field of cutting-edge inorganic chemical materials such as carbon nano-tubes, he will present various business plans next year.
In line with this growth goal, LG Chem set a goal of investing the largest amount ever in the facility (CAPEX) and R & D this year. Facility investment will increase by 52% to KRW 3.8 trillion, while R & D expenditure will increase by 22.2% to KRW 1.11 trillion. Jobs also increase significantly. The company plans to hire 1,500 people, 50% more than last year, mainly focusing on talent in areas such as battery and bio. In addition, we will invest KRW 140 billion in safety environment field, which is 100% higher than last year, to strengthen safety accident prevention education.
Vice President Park pointed out, "Albatross, the world`s largest winged bird, is the most distant and highest in the world, with no more than three meters of storm, "Even if everyone around gives up, we will not stop challenging our growth."
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
Vice Chairman Park stated that the company will hold sales of KRW 36.4 trillion in 2020, which will record an annual average growth rate of 15% or more from this year after holding a press conference at Daesan Factory in Seosan-si, Chungcheongnam-do.
Considering LG Chem`s sales last year was KRW 25.69 trillion, it is an aggressive goal to increase over KRW 10 trillion in two years.
It is also very challenging compared with the growth rate of global chemical companies from 2010 to 2016. During this period, BASF Germany grew at an average annual rate of 0.5%, while US Dow Chemical and Mitsubishi Chemical of Japan recorded a -1.8% growth rate. During the same period, LG Chem`s growth rate was 0.9%.
Meanwhile, Vice President Park cited batteries for electric cars as the reason for this growth. He said, "Half of the KRW 10 trillion (sales increase) is on the battery side. I think it is fairly accurate because a considerable portion is on the car battery side and there are quite a lot of orders." Considering that LG Chemical`s annual sales of LG Chem`s annual sales reached KRW4.5606 trillion last year, its aggressive goal is to increase sales more than double within three years. As of the end of last year, the automobile battery order backlog is worth W42trn. "The atmosphere is getting better, but I`m careful to say what`s going on right now," Park said. "It`s a subsidy (in China in 2020) There will be a chance when this is over."
In the case of biotechnology sector, which is another growth engine, we will work on building infrastructures and systems that will carry out our future strategy, and aim to enter the top 10 in 10 years. We will strengthen our profitability by focusing on high value-added products Introduced. He added that in the field of cutting-edge inorganic chemical materials such as carbon nano-tubes, he will present various business plans next year.
In line with this growth goal, LG Chem set a goal of investing the largest amount ever in the facility (CAPEX) and R & D this year. Facility investment will increase by 52% to KRW 3.8 trillion, while R & D expenditure will increase by 22.2% to KRW 1.11 trillion. Jobs also increase significantly. The company plans to hire 1,500 people, 50% more than last year, mainly focusing on talent in areas such as battery and bio. In addition, we will invest KRW 140 billion in safety environment field, which is 100% higher than last year, to strengthen safety accident prevention education.
Vice President Park pointed out, "Albatross, the world`s largest winged bird, is the most distant and highest in the world, with no more than three meters of storm, "Even if everyone around gives up, we will not stop challenging our growth."
By Park Jung Il comja77@