According to a March 8, 2026 announcement, LG Chem is pushing forward with a structural reorganization of its bisphenol A (BPA) business unit, including plans for a potential equity sale. Industry observers widely view this as a strategic step to streamline low-margin commodity chemical operations while accelerating its shift toward high value-added business areas.

On April 8, 2026, LG Chem, together with Kukdo Chemical and Samil PwC, carried out due diligence for strategic cooperation regarding the BPA business at LG Chem’s Daesan Plant in Chungcheongnam-do, South Korea.

The company is evaluating multiple restructuring alternatives, such as selling a partial equity stake in the BPA business or establishing a joint venture (JV). Bisphenol A is a key raw material for engineering plastics including polycarbonate (PC) and epoxy resins, but is classified as a standard commodity petrochemical product with prices highly sensitive to market cycles.

LG Chem currently operates an annual BPA production capacity of 165,000 tonnes at its Daesan Plant. Kukdo Chemical is among its primary downstream customers. Industry analysts suggest that forming a joint venture with a downstream partner will help strengthen vertical integration between raw material supply and end-market demand, while easing LG Chem’s capital expenditure burden.

This move is seen as part of the company’s ongoing portfolio restructuring to counter the structural downturn in the commodity petrochemical segment. LG Chem has recently continued structural adjustments focused on divesting or reorganizing non-core and low-return assets.