LG CHEM Products

PETROCHEMICALS

We support our customers in their quest for success by being a reliable source for chemicals and polymers.

At LG Chem, we are a major global supplier of quality petrochemicals ranging from basic distillates to specialty polymers. Our extensive experience and advanced technology are enabling us consistently break new ground in the industry with highperformance products.

Our mergers with LG Daesan Petrochemicals in 2006 and LG Petrochemical in 2007 have given us a vertically integrated production system that continues to enhance the synergy of our operations. At the same time, our recently expanded ABS plant in China has solidified our position as the global ABS industry leader, while our new styrene-butadiene latex (SBL) plant there is now playing a key role in expanding the weighting of specialty product grades in our portfolio.

Today, we continue to systematically lay the foundation for future growth. At home, we are steadily expanding the capacity of our Daesan naphtha cracking center. In China, we are growing our PVC business as we enter the specialty polymers business. In the longer term, our increasing vertical integration will enhance our revenue base as we focus on upgrading and streamlining our business operations and selectively developing innovative new products that will improve our bottom line.





INFORMATION & ELECTRONIC MATERIALS

We help our customers make tomorrow happen today with advanced materials and solutions for the information revolution.

At LG Chem, we supply rechargeable lithium-ion and lithium-ion polymer batteries, optical materials such as LCD polarizers, color filter photoresists, and PDP filters, and electronic materials such as printed circuit board materials and toners to a client list that includes some of the world’s biggest electric and electronics manufacturers. Our ongoing investment in R&D, innovative products, and progressive marketing continues to make this our fastest-growing business area.

We continue to increase the capacity utilization ratio of our battery business. Our recently expanded mobile-phone battery line in Nanjing, China has boosted our overseas production capacity to 10 million cells annually. We are also stepping up our investment in LCD polarizer production with a ultra-wide lines in Ochang, Korea as well as additional back-end processing capacity in China and Taiwan as we position ourselves for growth in those markets.

Looking ahead to the future, our goal is to raise Information & Electronic Materials Group sales from the current 20% level to 30% of the total by 2012. Toward this end, we will focus on developing value-added optical materials, gaining a cost edge in batteries by bringing production of key materials in-house, and building a presence in the medium- and large-format battery fields. We will also be expanding our business portfolio into profitable, fast-growing clean energy fields and nanomaterials.





BATTERIES

We completed development and began mass production of Korea’s first lithium-ion batteries back in 1999. At the end of 2008, we were the world’s fourth-largest maker with an annual production capacity of 40 million cells, including 30 million cells in Korea and 10 million overseas. The first in the industry to commercially produce 2,800 mAh cells, we are considered to be one of the technology leaders in the field.

We produce both lithium-ion and lithium-ion polymer rechargeable batteries. Lithium-ion batteries come in cylindrical or prismatic cells, exhibit no memory effect, and have a high energy density and nominal voltage. They also have multiple safety features that make them ideal for notebook PCs, camcorders, mobile phones, and other personal electronics devices. Lithium-ion polymer batteries offer more freedom in battery shape than lithium-ion cells, enabling the battery to be easily and perfectly tailored to fit the device. Their energy density is also superior to conventional cells, allowing significant weight savings to be achieved.

Medium- and large-format batteries are highoutput, high-capacity devices with a long list of applications including robots, robot vacuum cleaners, electric bicycles, electric wheelchairs, and electric and hybrid vehicles. Since beginning commercial production of these batteries in 2005, we have continued to enhance our competitiveness by working closely with major customers. We are also positioning ourselves for future growth by accelerating development of low-cost, high-efficiency clean energy solutions.