On August 16, LG Chem announced that it has signed a formal contract with the American grain and oil giant ADM (Archer Daniels Midland) to establish two joint ventures to produce lactic acid and polylactic acid in the United States. This contract is another achievement following the signing of the Cooperation Framework Agreement (HOA) between the two parties in September last year. ADM is a nutraceutical company leading the food and beverage, nutrition, and sustainable solutions markets. It has a global agricultural supply chain and grain processing technology. It has been cooperating with LG Chem to develop plant-based biomaterials.
The first joint venture, GreenWise Lactic, with ADM as the majority shareholder, will utilize ADM's fermentation technology to produce 150,000 tons of corn-based high-purity lactic acid per year.
The second joint venture, LG Chem Illinois Biochem, will be majority-owned by LG Chem. It will leverage LG Chem's expertise in bioplastics to build a facility that will produce approximately 75,000 tons of polylactic acid (PLA) annually using products from GreenWise Lactic. The bioplastic produced can make about 2.5 billion 500ml eco-friendly mineral water bottles. The production facility will be built in Decatur, Illinois, and is scheduled for completion in 2025. Construction will start in 2023 after final deliberations by both councils.
LG Chem is the first Korean company to build a PLA plant from raw materials to product production. By establishing the joint venture, LG Chem can not only ensure high productivity of high-purity lactic acid required for commercial use of PLA, but also be able to apply biological raw materials to the development of various high-value-added products.
"Sustainability is the global direction driving ADM's strategy and growth," said Juan R. Luciano, CEO of ADM. "We are delighted to partner with LG Chem as we work together in a market for plant-based biosolutions that are experiencing strong growth in demand. develop."
Vice President of LG Chem Xue Zhe Xin said: "The establishment of a joint venture company is a sustainable development strategy that directly contributes to solving environmental problems such as climate change and waste plastics. Based on environmentally friendly materials, one of the new growth engines, we will respond to rapid Changing markets and customers to lead the market.”
