Recently, according to a report by the Korean Economic Daily, Aekyung Chemical of South Korea announced the acquisition of VPCHEM, a subsidiary of LG Chem in Vietnam, which is engaged in the production and sale of plasticizers. Aekyung Chemical acquired 50% of the shares previously held by LG Chem.

Annual Production Capacity Increased by 110,000 Tons

Through the acquisition of VPCHEM, the sole plasticizer production plant in Vietnam, Aekyung Chemical will increase its annual plasticizer production capacity from the current 550,000 tons (400,000 tons in South Korea, 150,000 tons in China) to 660,000 tons.

Aekyung Chemical explained that this latest acquisition will enable them to strategically produce and supply environmentally friendly plasticizers to customers in North America and Europe, while also producing general-purpose and functional plasticizers for China and Vietnam, thereby achieving strategic selection and focus.

Aekyung Chemical CEO Pyo Kyoung-won stated, "The acquisition of VPCHEM shares is of great significance for further strengthening the core plasticizer business of the company." He added, "We will efficiently operate VPCHEM, maximize the synergies of our global production bases, and take the plasticizer business to new heights."

Significant Increase in Demand

Plasticizers, also known as plasticizers, can combine with the polymer groups of materials such as plastics, coatings, and rubber, reducing the forces between polymer groups and making these materials easier to process, flexible, smooth, and more durable.

Aekyung Chemical stated that with industrial development and rising income levels, the professional application areas of plasticizers are constantly expanding. Starting from 2023, it is expected that the plasticizer market will grow at an average annual rate of 2.6% over the next 10 years. Particularly, the demand for specialty plasticizers in Vietnam is continuously increasing, with an expected annual growth rate of 3.7%.

VPCHEM:

The company was established through cooperation and joint investment by LG Chem, Southern Fertilizer Corporation (a subsidiary of Vietnam Chemical Corporation), and PetroVietnam (a subsidiary of Vietnam Oil and Gas Corporation).

The company specializes in the production and sale of plasticizers, primarily serving the PVC industry. In 2020, its production capacity increased to 120,000 tons per year.