LG Chem posts record profit on better than estimated demand from China

21-Jul-10

South Korea’s biggest maker of chemicals LG Chem Ltd. has posted a record Q2 profit, thumping estimates, as Chinese demand for plastics and synthetic rubber feedstocks increased. Sales, including those of overseas affiliates, gained 31% to 5.03 trillion won. Demand from automotive and chemical sector, including ethylene and polyvinyl chloride increased as the global economy recovered. Returns from processing naphtha into ethylene jumped 77% vs the second quarter from a year earlier. Government stimulus packages boosted demand for consumer goods, particularly from China, which uses lots of chemical products. Capacity of a naphtha cracker at Yeosu was increased to 1 mln tons from 900,000 tons in March.