LG Chem to close Indonesia unit

LG Chem to close Indonesia unit

SEOUL: LG Chem Ltd., South Korea's largest chemicals maker,
said it is closing its Indonesian unit that makes polyvinyl
chloride (PVC) pipes because it can't compete with local
competitors on price.

The liquidation value of PT Sinar LG Plastics Industry Co.
is estimated at 21.1 billion won (US$17.7 million), the company
said in a regulatory filing.

Increased production by small- and medium-sized Indonesian
makers of PVC pipes caused the company to lose price
competitiveness, Eric Han, an LG Chem spokesman, said.

LG Chem is the world's sixth-largest maker of PVC, a raw
material to make a variety of plastic products. It has an annual
production capacity of 1.13 million tons. -- Bloomberg