More sustainability news from Korea

Korea's LG Chem has announced a major green shift with its plan for a major investment in lactic acid and polylactic acid (PLA) resin. Teaming up with nutrition and biosolutions provider ADM, the two partners plan to take steps toward launching a joint venture in early 2022 that would build, own and operate a US-based facility to produce high-purity corn-based lactic acid on a commercial scale.

According to Grand View Research, global demand for lactic acid – which is used broadly in food, feed and cosmetics in addition to industrials like bioplastics – was valued at approximately US$2.7 billion in 2020, with an expected annual growth rate of 8 percent.

Further, the companies will collaborate on a second joint venture that would use lactic acid produced by the first joint venture to produce and commercialize polylactic acid (PLA), a plant-based, biodegradable plastic that can be used in a wide array of products, from food packaging to clothing to upholstery. According to new market research by MarketsandMarkets, demand for global bioplastics and biopolymers is projected to grow from US$10.7 billion in 2021 to US$29.7 billion by 2026, representing a CAGR of 22.7%.

ADM Chairman and CEO Juan Luciano and LG Chem Vice Chairman and CEO Hak Cheol Shin inking the deal at ADM’s global headquarters in Chicago. [Image; Businesswire]


The two companies also agreed to actively cooperate in the joint development of technology for other biomaterials that can be applied in the biochemical and sustainability sector in the future.

More can be found here: https://www.businesswire.com/news/home/20210914005305/en