Neste and LG Chem building a strategic partnership to drive the polymers and chemicals industry transformation towards a circular bioeconomy
Neste Corporation, Press Release, 5 November, 2020 at 1:00 am EET (08:00 am KST)
LG Chem will start replacing fossil feedstock commonly used in the manufacturing of polymers and chemicals with Neste Renewable Hydrocarbons in the upcoming months. Photo: Panoramic view of LG Chem’s petrochemical complex in Yeosu, South Korea.
Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel and a forerunner as a provider of renewable and circular solutions for the petrochemical industry, and LG Chem, South Korea’s largest diversified petrochemicals company and a world’s leading manufacturer of lithium-ion batteries for energy solutions, have today announced their aim to build a strategic long-term partnership to develop and grow the biopolymers and biochemicals market globally, and more specifically, in the LG Chem’s home market Korea.
Thanks to the partnership, LG Chem will start replacing fossil feedstock commonly used in the manufacturing of polymers and chemicals with Neste Renewable Hydrocarbons in the upcoming months. This helps LG Chem to produce renewable polymers and chemicals to meet the increasing sustainability requirements and expectations of its customers – such as those producing polyolefin-based containers, packaging, hygiene products, and electronic materials – without compromising on quality, performance or recyclability of its products.
“We are delighted to start collaborating with LG Chem, a company with one of the most diverse polymers and chemicals offerings in the world, to make an increasing impact on the global industry’s transformation towards a circular bioeconomy. This cooperation enables us to further expand the portfolio of applications that can benefit from Neste’s renewable drop-in solutions”, says Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals from Neste.
"LG Chem’s proprietary technology and significant market share of diverse chemical products and Neste’s sustainable solution based on renewable hydrocarbons, have come together in a partnership that will pave the way for sustainable growth in building a circular bioeconomy for both parties and also the global industry”, says Kug Lae Noh, Executive Vice President and the President of Petrochemicals Company from LG Chem.
Neste’s renewable hydrocarbons are produced entirely from traceable, bio-based raw materials, such as waste and residue oils and fats, providing a high-quality, more sustainable alternative to fossil feedstock.
Neste Corporation
Susanna Sieppi
Vice President, Communications
For further information:
Jeroen Verhoeven, Vice President Production Partners Management, Renewable Polymers & Chemicals, Neste. Neste’s media service, tel. +358 50 458 5076 / media@neste.com (weekdays between 8:30 a.m. and 4:00 p.m. EET).
LG Chem Corporate Communications lgchempr@lgchem.com (weekdays between 8:30 a.m. and 4:00 p.m. KST)
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2019, Neste's revenue stood at EUR 15.8 billion, with 82% of the company’s comparable operating profit coming from renewable products. Read more: neste.com & www.neste.com/companies/products/plastics
LG Chem in brief
LG Chem is South Korea’s largest diversified chemical company which operates four main business portfolios: Petrochemicals, Energy Solutions, Advanced Materials and Life Sciences. The chemical business manufactures a wide range of petrochemical products from high-value added to commodity goods. LG Chem also extends its chemical expertise into high-tech areas such as lithium-ion batteries, industrial & automotive materials, drugs & vaccines to deliver broad range of differentiated solutions for our customers. LG Chem aims to reach carbon-neutral growth by 2050 and promote RE100 (Renewable Energy 100) at all business sites worldwide to suppress carbon emissions in 2050 to 10 million tons, which is equivalent to the amount in 2019. Throughout multiple production facilities and an extensive distribution network around worldwide, LG Chem employs approximately 40,000 people and generated sales of KRW 28.6 trillion in 2019. For more information, please visit www.lgchem.com.
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