LG Chem Ltd. has announced a strategic partnership with Saudi Arabia’s Alkhorayef Group to establish a reverse osmosis (RO) membrane production facility in Saudi Arabia, with a joint investment of 320 million riyal ($85.3 million). Scheduled to commence operations in 2026, this facility will bolster Saudi Arabia’s capacity in desalinating seawater, a critical resource for the country, which accounts for 21% of global RO membrane demand.
The new plant will utilize advanced thin film nanocomposite technology for manufacturing RO membranes, which are essential for converting seawater into potable water. This technology aligns with Saudi Arabia’s increasing reliance on desalination, which provides over 70% of its water supply.
This initiative is not just a business expansion for LG Chem but also strategically positions the company within the Middle Eastern market, particularly in Saudi Arabia, where there is a strong preference for domestically-produced water treatment solutions. This preference is likely to afford LG Chem advantageous tariffs and a competitive edge in securing local contracts.
The collaboration is also set to support Saudi Arabia’s ambitious “Vision 2030,” which includes significant projects like the $1.5 trillion Neom megaproject, aiming to diversify the economy and develop public service sectors such as water supply.
LG Chem’s global operations are already substantial, with facilities capable of processing 5.1 million tons of seawater daily. This new venture promises to expand that capacity significantly, supporting the water needs of potentially millions more. This partnership marks a significant step in LG Chem’s global strategy and reinforces its commitment to sustainability and technological advancement in water treatment.
