South Korea’s LG Chem and CJ CheilJedang, the parent company of PHA manufacturer CJ Biomaterials, have announced a joint venture to produce and commercialise bio-polyamide.
The companies intend to be the first in South Korea to establish a fully domestic bio-polyamide supply chain.
LG Chem and CJ CheilJedang signed a Heads of Agreement, a non-binding agreement, to build a pentamethylenediamine (PMDA) plant, a raw material produced by fermenting corn, sugarcane, and other crops, and used to manufacturer bio-nylon.
CJ CheilJedang will produce PMDA using microbial precision fermentation technology and technology jointly developed by the two companies, whilst LG Chem will polymerise the material into bio-nylon and be responsible for its sale.
The joint venture was spurred by stricter environmental rules in Europe and the US, including mandatory disclosure of scope 3 carbon emissions, LG Chem said in a statement.
The European Council introduced a new reporting requirement for corporate sustainability in November 2022. From 2025, companies in Europe, including those based elsewhere with European operations, will be required to report indirect emissions across their value chain, also known as scope 3 emissions. Scope 3 emissions often represent most an organization’s total greenhouse gas emissions.
The company expects such regulations, as well as the increased importance of Lice Cycle Assessments (LCAs), to lead to increased consumer demand for bio-nylon in textiles, automotive, and electronics applications. The global bio-nylon market is expected to grow from 400,000 tonnes in 2023 to 1.4 million tonnes by 2028.
“This agreement is significant in that it represents cooperation between leading companies in their respective fields towards the common goal of Net Zero,” said LG Chem CEO, Hak Cheol Shin. “LG Chem will continue to advance its plastics business using eco-friendly, low-carbon materials, thereby establishing itself as a leading company with pioneering leadership in the area of carbon reduction,” he concluded.