LG Chemical to merge with LG Petrochemical

South Korea’s largest chemical company LG Chemical Ltd. has approved a plan to merge with LG Petrochemical Co. Ltd., in a move aimed at boosting operational synergies between the two. The two companies agreed to merge in a bid to actively respond to changes in the business environment domestically and overseas, to boost efficiency and maximize synergies and to grow into a global petrochemical company. The merger will also boost LG Chemical’s bargaining power for purchasing raw materials as well as lowering its debt ratio. Following the merger, LG Chemical said it will have an annual ethylene production capacity of 1.66 million tons, making it the second largest domestic producer and fifth in the Asian region. (July 5, 2006)