South Korea's Kukdo Chemical plans to acquire LG Chem's 165,000-ton bisphenol A business for KRW 78.4 billion

en.Wedoany.com Reported - On October 26, South Korea's Kukdo Chemical decided through its subsidiary Kukdo International to acquire LG Chem's bisphenol A (BPA) production and sales business at its Daesan plant in South Chungcheong Province, South Korea, for KRW 78.437 billion, approximately USD 55 million. The acquisition covers the production business with an annual capacity of 165,000 tons of bisphenol A, the sales business and related operating assets, with the transaction expected to be completed in the first half of 2027.

Kukdo International will take over the bisphenol A production and sales business of LG Chem's Daesan plant. The plant has an annual bisphenol A production capacity of approximately 165,000 tons, with products mainly supplied for polycarbonate and epoxy resin production. Through this acquisition, Kukdo Chemical will obtain bisphenol A production capacity and secure upstream raw material supply for its epoxy resin business.

On October 27, Kukdo International further decided to implement a KRW 100 billion third-party allotment capital increase, with Kukdo Chemical and LG Chem as subscribers. Of this, KRW 78.437 billion will be used to pay for the bisphenol A business acquisition, KRW 7.563 billion for raw material procurement and other operating expenses, and KRW 14 billion for information technology system construction and other acquisition-related costs.

The capital increase funds are planned to be paid in two installments, with KRW 10 billion invested in November 2026 and KRW 90 billion in the first half of 2027. Kukdo Chemical also decided to contribute KRW 50 billion to Kukdo International to support this business acquisition and the subsidiary's capital expansion.