In a significant expansion of its business operations, South Korean company Aekyungсhemical has announced the acquisition of a 50% stake in VPCHEM, a Vietnam-based subsidiary of LG Chem Ltd., specializing in plasticizer production. This move marks a strategic step for Aekyungсhemical in strengthening its position in the global plasticizer market.
Plasticizers are essential additives used in the molding and processing of various plastics, notably polyvinyl chloride (PVC), a material prevalent in products like wallpaper, flooring, and wires. The acquisition comes at a time when the Vietnamese domestic market for plasticizers is poised for growth, expected to increase by 3.7% annually. This growth is attributed to industrial development and rising income levels, which are driving the demand for specialized plasticizer applications.
VPCHEM, currently the only plasticizer manufacturing facility in Vietnam, represents a vital addition to Aekyung Chemical’s production capacity. Prior to the acquisition, the company’s annual output was 550,000 tons, with facilities in Korea and China. The inclusion of VPCHEM boosts this capacity to 660,000 tons per year.
Aekyungсhemical’s strategic vision for this acquisition involves producing and supplying environmentally friendly plasticizers for the North American and European markets. Concurrently, it plans to continue manufacturing general-purpose and functional plasticizers for the Chinese and Vietnamese markets.
Pyo Kyoung-won, CEO of Aekyungсhemical, emphasized the significance of this acquisition. “The purchase of VPCHEM equities solidifies the foundation for our core plasticizer business’s enhancement strategy,” he stated. Kyoung-won further added that Aekyungсhemical aims to efficiently operate VPCHEM, maximizing synergy among its global production bases to propel the plasticizer business to new heights.
