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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Chem is facing mounting challenges in its battery separator business, as it struggles to maintain global competitiveness. The company is reallocating production workers, halting U.S. expansion plans, and attempting to sell its Hungarian joint venture plant.
According to battery industry sources on Wednesday, LG Chem recently began reassigning workers at its Cheongju separator plant, shutting down low-productivity production lines and shifting personnel to more efficient ones. With the secondary battery market in a downturn and Chinese separators offering better price competitiveness, LG Chem is scaling back production due to declining demand.
Even domestic battery manufacturers are turning away from LG Chem’s separators, as Chinese competitors close the quality gap through continuous technological investment, while maintaining a significant price advantage.
Amid an ongoing business restructuring within LG Group, the separator business is seen as a primary target for downsizing. LG Chem has ceased additional investments, scrapped its U.S. expansion plans, and abandoned plans for further investment in its Hungarian joint venture with Toray. The company even explored selling its Hungarian plant to private equity firms, but the deal fell through.
Last month, LG Chem held multiple briefings for employees, warning that if the current difficulties persist, an exit from the separator business may become inevitable.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
