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