LG Chem posts record sales in 2020

LG Chem said on Wednesday that it has posted sales of 30 trillion won and operating income of 2.35 trillion won for the full year of 2020.

This was an increase of 9.9% and 185.1%, respectively, from 2019.

In the fourth quarter alone, sales was 8 trillion won and operating income 673.6 billion won. Sales increased 19.9% year-on-year and income was a return to the black.

LG Chem said it has exceeded 30 trillion won in sales for the first time despite the COVID-19 pandemic. EBITDA was also 4.6 trillion won, the company’s highest ever.

Fourth quarter also saw the successful split-off of its battery business, now called LG Energy Solution, and a return to profitability, the company said.

LG Chem is expecting sales of 37.3 trillion won for the full year of 2021, 24.1% higher than in 2020.

It will expand its battery material, sustainable solution, e-mobility material and global new pharmaceutical going forward, it said.

The company’s petrochemical business expects demand to improve from all major industries. It will focus on its main products: ABS, NBL and POE.

Its technology material business will expand its production capacity for high-nickel cathode to meet large demand from battery, OLED and IT. It will also foster anode binder and heat protection adhesives. The business will also expand its e-mobility business by focusing on automotive display and engineering materials.

The biological science business has began supplying its polio vaccine to UNICEF. The business expects over 10% sales increase in 2021.

The energy solution business is expecting the expansion of the energy storage system markets from growth in electric vehicles. The business expects 50% growth this year from launches of new electric vehicles and more orders for ESS. It will also continue to develop next-generation batteries.