South Korea“s LG Chem Ltd. established a new powder coatings company with Ferro Corp. of the US and plans to sell its powder coatings operations to the new joint venture, the company said 31 May.
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South Korea“s LG Chem Ltd. established a new powder coatings company with Ferro Corp. of the US and plans to sell its powder coatings operations to the new joint venture, the company said 31 May. Last week, the two companies formed LG Ferro Powder Coatings Ltd., with Ferro holding a 70.1% stake in the new company, while LG Chem holds 29.9%, LG Chem said in a statement. Under the agreement, LG Chem will sell its powder coatings business, which has a capacity of 5,000 metric tons a year, to LG Ferro in an effort to restructure its businesses, LG Chem said. The sales amount is “a few million dollars,” a LG Chem spokesperson said, but he didn“t specify the amount. LG Chem plans to use the proceeds for investments in its core businesses, including its electronic materials business, the company said. As a part of ongoing business restructuring, LG Chem said last week that it will hand over its domestic dye business and its stake in a Chinese joint venture to Germany“s M.Dohmen GmbH in exchange for a 49% stake in the German company. LG Chem is one of the three companies that were spun off from LG Chemical Co. in early April. Meanwhile, the Cleveland-based chemical and coatings firm Ferro would gain immediate access to the Korean market, consolidate its presence in Asia and its position as one of the world“s leading provider of powder coatings.