이 기사는 2019년 10월 29일 16:39 thebell 에 표출된 기사입니다.

South Korea's leading chemicals firm LG Chem has started the negotiation with U.S.-based Corning on the sale of its liquid crystal display (LCD) glass substrate business. The market is watching if two companies can reach an agreement by the end of this year.

According to investment banking industry sources on October 25, LG Chem is under negotiation with one of the world's biggest glassmakers Corning to sell its LCD glass substrate business. The South Korean company has been negotiating with leading companies of the market like Corning and Japan-based Asahi Glass for several months, but it is said that LG Chem is inclined to Corning recently. The global glass substrate market is dominated by Corning, Asahi Glass, and Nippon Electric Glass.

The chemical firm is seeking to sell its glass substrate business to withdraw from non-core business and develop others such as organic light-emitting diode (OLED) into its strategic business. The firm has tapped the market to sell its glass substrate business and approached possible buyers since the start of this year.

LG Chem launched the Advanced Materials unit earlier this year and has expressed its intention to strengthen related businesses.

The company has been busy securing its new growth engine and enhancing the competitiveness in the overseas market. LG Chem has resolutely exited or sold non-core business to secure funds and invested heavily in key businesses. Along with glass substrate business, the chemical firm is working on the sale of polarizing plate business in China. LG Chem estimates its polarizing plate business value at 1.5 trillion won.

The company has also showed strong interest in acquiring businesses that own advanced materials technology businesses abroad and forming a joint venture (JV) with global companies. Recently the chemical company purchased OLED materials-related technology from U.S.-based DowDuPont for around 200 billion won.

LG Chem also participated in a deal to takeover Solvay's Engineering Plastics (EP) business in July. The company attempted to acquire Solvay's EP business to enhance its business, with the domestic EP market only accounts for 3.5 percent of the global market. Although the company walked away from the deal, the industry paid attention to its movement to develop advanced materials its new growth engine. Even after the Solvay deal, LG Chem has actively seeking out cross-border deals in advanced materials industry.

The company also has pursued foreign investment. LG Chem recently announced its electric vehicle (EV) battery JV with General Motors (GM). Before that, the company established a JV with China's Geely Automobile Holdings to produce batteries for EV.

If LG Chem's sale of glass substrate and polarizing plate businesses go smoothly, the company's strategy of 'focusing on key businesses' is expected to accelerate. "LG Chem is actively participating in outbound deals in addition to the sale of glass substrate and polarizing plate businesses. That is why the company has to close the ongoing deals smoothly," said an industry source.

(By reporter Kim Hye-ran)