South Korea: Methyl Methacrylate LG Chem to Use Recycled Materials for Transparent ABS Production
LG Chem has entered into a MOU with Veolia R&E to ensure the stable supply of chemically recycled MMA (methyl methacrylate) for producing transparent ABS (high value-added synthetic resin). Under the contract, the companies will also work together for process technology enhancement and R&D to improve the quality of recycled MMA.
Seoul/South Korea – LG Chem is starting to produce transparent ABS (high value-added synthetic resin) using a chemically recycled raw material. The company has announced that it had signed a 'Strategic Partnership (MOU) for stabilizing the supply of recycled MMA (methyl methacrylate) and upgrading its quality' with Veolia R&E, the largest producer of recycled MMA in Korea.
MMA, the core raw material of transparent ABS, is a colorless and transparent liquid compound and is widely used as raw material in various industries such as automotive, home appliances, IT devices and building materials such as artificial marble.
Through this MOU, LG Chem will secure an opportunity to commercialize low-carbon transparent ABS based on chemically recycled MMA, while also being able to actively cooperate with Veolia R&E for process technology enhancement and R&D to improve the quality of recycled MMA.
Although the specific quantity and cooperation period cannot be disclosed in accordance with the MOU between the two companies, LG Chem is expected to receive a stable supply of recycled MMA required for transparent ABS production for the next several years. The two companies plan to discuss various ways of cooperation on the recycling MMA business in the future.
This MOU will serve as an opportunity to further advance a sustainable business model for the environment and society.
This MOU is meaningful for LG Chem, which is focusing on carbon neutrality and virtuous cycle of resources. The company is collaborating with Veolia R&E to produce sustainable low-carbon products not only through mechanical recycling but also through chemical recycling.
Through the MOU, LG Chem is able to further revitalize the opportunity to create a plastic-circulating economy by chemically recycling resources that are usually disposed of in landfills or through incineration.
LG Chem plans to apply its eco-friendly premium integrated brand ‘Letzero’ to the transparent ABS produced using recycled MMA and supply it to global home appliances and IT companies.
Kug Lae Noh, President of LG Chem’s Petrochemicals Company, stated, “This MOU will serve as an opportunity to further advance a sustainable business model for the environment and society. We will continue to lead the ABS market by further enhancing our competitiveness in existing businesses as well as our eco-friendly business capabilities.”
According to industry research, the global market demand for transparent ABS is expected to grow from around 270,000 tons in 2021 to around 360,000 tons in 2026, growing at an annual average rate of more than 6 %.