LG Chem and CJ CheilJedang collaborate on joint venture production plant for biobased polyamide; CJ CheilJedang will supply Pentamethylenediamine made using fermentation technology, which LG Chem will polymerize to produce bio-nylon

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LG Chem and CJ CheilJedang Join Forces to Commercialize Bio-Nylon


■ LG Chem signs HOA for the establishment of a joint venture for the production and sales of bio-nylon on the 14th
□ For the first time among domestic companies, a joint venture will be established to produce everything from raw materials to products, securing business competitiveness
□ Application of bio-nylon in the automotive, electronic devices, and textiles sectors... Significantly reducing carbon emissions

■ CEO Hak Cheol Shin
“LG Chem will continue to pursue the plastics business using eco-friendly, low-carbon materials, solidifying our position as a pioneering leader in the field of carbon reduction.”


LG Chem advances with CJ CheilJedang on a joint venture plant for bio-nylon (Bio-PA: Polyamide) to penetrate the eco-friendly market.

LG Chem announced that on the 14th, it had signed a Heads of Agreement (HOA) with CJ CheilJedang at the Yeouido LG Twin Towers for the establishment of a joint venture dedicated to the production and sales of eco-friendly nylon based on bio-materials (*PMDA).

*PMDA(Pentamethylenediamine): A raw material for bio-nylon produced by fermenting corn, sugarcane, and other crops.

As leading companies in the food/bio and chemical sectors, both parties plan to secure stable business competitiveness by being the first domestic companies to produce everything from raw materials to products for bio-nylon through this agreement.

CJ CheilJedang will produce PMDA using microbial precision fermentation technology and joint development technology between the two companies, while LG Chem will polymerize it to produce and sell bio-nylon.

This bio-nylon, produced from bio-based materials such as corn and sugarcane, boasts the same heat resistance and durability as petroleum-based nylon, making it suitable for use in a wide range of fields including textiles, automobiles, electronic devices, and more. Notably, its production using bio-based raw materials significantly reduces carbon emissions.

The recent implementation of global environmental policies and the mandatory disclosure of carbon emissions *Scope 3 in the United States and Europe are expected to continuously drive the demand for eco-friendly products. Furthermore, the expansion of Life Cycle Assessment (LCA) evaluations, which measure carbon emissions at each stage of product production in textiles, automobiles, and consumer electronics, is leading to a steady increase in customers seeking bio-nylon.

*Scope 3: Indirect emissions from the production and transportation of purchased materials, and the use of sold products.

The global market demand for bio-nylon is expected to record a high annual growth rate of 29%, expanding from 400,000 tons in 2023 to 1.4 million tons by 2028.

LG Chem CEO, Hak Cheol Shin, stated, “This agreement is significant in that it represents cooperation between leading companies in their respective fields towards the common goal of Net Zero.” He added, “LG Chem will continue to advance its plastics business using eco-friendly, low-carbon materials, thereby establishing itself as a leading company with pioneering leadership in the area of carbon reduction.”