LG Chem Ltd. finalized the disposal of its water filtration business to Seoul-based Glenwood Private Equity for ₩1.4 trillion ($1 billion), marking another step in the chemical giant’s retreat from non-core operations as financial pressure intensifies.
The transaction transfers the world’s second-largest reverse osmosis membrane producer to Korea Water Solution Holdings, a special purpose vehicle established by Glenwood. The business, which trails only Japan’s Toray Industries in global market share, manufactures membranes essential for seawater desalination and industrial water treatment.
The divestment comes as LG Chem grapples with mounting losses, reporting a ₩1.055 trillion net loss in the fourth quarter of 2024, significantly wider than the ₩81.4 billion loss recorded a year earlier. For the full year, operating profit plunged 63.75% while consolidated revenue fell 11.46%.
This marks Glenwood’s second major acquisition from LG Chem, following its ₩150 billion purchase of the diagnostics division in 2023, which was rebranded as Invitros. The private equity firm has built its reputation through carve-out transactions involving non-core assets from large Korean conglomerates.
The disposal reflects broader challenges facing the petrochemical sector, where excess capacity and weaker-than-expected demand have pushed operating rates well below optimal levels, with industry experts forecasting the downturn could persist into mid-2025.
LG Chem stated the move aligns with its strategy to concentrate on three growth engines: eco-friendly materials, battery components, and pharmaceuticals.
