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LG Chem and CJ CheilJedang Forge Bio-Nylon Venture to Drive Sustainability

The joint venture marks a significant step towards eco-friendly materials, aligning with global carbon reduction efforts
South Korea
l 051910.KO c 097950.KO Mid and Small Cap 2000 Blue Chip 150
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In a pioneering move towards sustainability, South Korea’s LG Chem Ltd. and CJ CheilJedang Corp. have announced the formation of a joint venture focused on the production of eco-friendly bio-nylon, setting a new benchmark for environmental responsibility in the industry. The partnership, heralded by the signing of a head of agreement (HOA) between LG Chem CEO Shin Hak-cheol and CJ CheilJedang CEO Choi Eun-seok, aims to leverage biotechnological advancements to reduce carbon emissions and foster a new revenue stream.

The joint venture plans to construct a facility dedicated to producing bio-nylon from PMDA, a bio-material derived through the fermentation of crops such as corn and sugarcane. This initiative marks Korea’s first bio-nylon project capable of manufacturing both the raw materials and the finished product, showcasing the country’s commitment to innovative, sustainable solutions.

CJ CheilJedang will utilize its expertise in microbial precision fermentation technology to produce PMDA, while LG Chem will focus on polymerizing these raw materials into bio-nylon, or bio-polyamide. This collaboration promises to produce a material with the durability and heat resistance of traditional nylon while significantly cutting carbon emissions, making it suitable for a wide array of applications from textiles to electronics.

The move comes at a time when global environmental policies, including mandatory Scope 3 carbon emissions disclosure in the US and Europe, are becoming increasingly stringent. These policies, along with the growing trend towards life cycle assessment evaluations, are expected to surge demand for sustainable materials like bio-nylon. According to industry forecasts, the global bio-nylon market is set to expand at an annual growth rate of 29% by 2028, underscoring the timely nature and potential impact of this joint venture.

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