Korea’s Aekyung Chemical acquires LG Chem’s Vietnam plasticizer subsidiary

South Korea consumer goods producer Aekyung Chemical Co. has acquired Ho Chi Minh City-headquartered VINA Plasticizers Chemical Company (VPCHEM), a manufacturer of plasticizers and LG Chem Ltd.’s Vietnam subsidiary.

Aekyung Chemical acquired the 50% in VPCHEM previously held by LG Chem, Korean media reported, citing the former’s announcement on Friday.

With the acquisition of VPCHEM, the sole plasticizer manufacturing facility in Vietnam, Aekyung Chemical has increased its annual plasticizer production capacity from the existing 550,000 tons (400,000 tons in Korea and 150,000 tons in China) to 660,000 tons.

Plasticizers are additives that facilitate the molding and processing of plastics, including polyvinyl chloride (PVC), commonly used in applications such as wallpaper, flooring and wires.

The Vietnamese domestic market is expected to grow by 3.7% annually, driven by the expansion of specialized applications for plasticizers due to industrial advancement and improved income levels.

The latest acquisition enables Aekyung Chemical to strategically produce and supply environmentally friendly plasticizers for North American and European customers, while manufacturing general-purpose and functional plasticizers for China and Vietnam, the company said.

VPCHEM was established in 1995 as a joint venture between LG Chem, Southern Fertilizer JSC (under Vietnam Chemical Corporation) and Vietnam Petroleum Corporation (under oil and gas group Petrovietnam), according to information filed on the company’s website.

The company is specialized in producing and trading plasticizers mainly for serving the PVC industry. In 2020, it increased its capacity to 120,000 tons/year from the original 30,000 tons/year in 1997 and 40,000 tons/year in 2000.

VPCHEM had its name changed from LG VINA Chemical Company (LG VINA Chem) in October 2021.