Seoul: LG Chem Ltd. is contemplating the sale of its water solutions division, a unit responsible for producing reverse osmosis (RO) membrane filters utilized in industrial desalination, as reported by industry sources.
According to Yonhap News Agency, LG Chem has reportedly identified Glenwood Private Equity as the preferred bidder and is currently in negotiations over the potential sale. The water solutions division generates around 200 billion won (approximately US$138.6 million) annually, with the sale price expected to reach approximately 1 trillion won.
LG Chem ventured into the RO membrane sector following its acquisition of U.S.-based NanoH2O in 2014 and subsequently established production facilities at its Cheongju plant. The company now ranks second in global market share, trailing Japan's Toray. Despite announcing plans to double the business size within five years after expanding the Cheongju plant in 2023, LG Chem is now focusing on enhancing its financial stability amid a prolonged downturn in its core petrochemical operations.
The petrochemical industry continues to face challenges due to a supply surplus from China and growing uncertainties linked to U.S. trade tariffs. LG Chem has stated that no final decision has been made regarding the ongoing discussions.