LG Chem decided to suspend alcohol production at its Naju plant in South Jeolla Province, citing increased competition from low-cost Chinese petrochemical products and rising logistics and transportation costs.

The move reflects ongoing belt-tightening across the petrochemical industry, with the company recently stopping operations at the plant’s alcohol production line, which had an annual capacity of 200,000 tons, and holding employee briefings regarding reassignment. Affected staff will be relocated to other departments within the Naju facility or transferred to plants in Yeosu or Daesan.

LG Chem previously produced alcohol at both its Yeosu and Naju plants. With this consolidation, the company’s total alcohol production capacity will be reduced by about half, leaving the Yeosu plant solely responsible for producing 200,000 tons annually.

The Naju plant had been manufacturing alcohol, polyvinyl chloride (PVC) plasticizers, acrylic acid, and adhesives. However, due to declining demand in the petrochemical sector, the plant ceased acrylic acid production in December 2023 and has now halted alcohol production as well.

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