In late 2023, Aekyung Chemical acquired a 50% stake in VINA Chemical Company Limited (VPCHEM), LG Chemical’s subsidiary in Vietnam, specializing in the production and trading of plasticizers mainly for the PVC industry. The main deal was finalized in February 2024.
Through the acquisition of VPCHEM – the sole plasticizer production facility in Vietnam, Aekyung Chemical has increased its annual plasticizer production capacity from 550,000 tons (400,000 tons in Korea and 150,000 tons in China) to 660,000 tons.
In addition, Aekyung Chemical explained that by securing additional production facilities abroad, the company not only increases its production capacity but also makes its global market strategy and focus feasible. In the future, Aekyung Chemical plans to produce environmentally friendly plasticizers for North America and Europe at its facilities in South Korea, while producing versatile plasticizers in China and Vietnam.
Pyo Kyung-won, CEO of Aekyung Chemical, said: “The acquisition of VPCHEM shares serves to further strengthen the foundation for implementing our plasticizer business upgrade strategy, the company’s main business. We will efficiently operate VPCHEM and maximize the synergy between our global production facilities to help our plasticizer business make new progress.”
According to research, VPCHEM was established in 1995 as a joint venture between major Vietnamese and Korean corporations. In 1996, the company began construction of its first factory. The founding shareholders of this business include LG Chemical, LG International – subsidiaries of LG Electronics (a Korean chaebol), and Southern Fertilizer Joint Stock Company, PV Oil.
The company’s charter capital is VND 104.5 billion, with Jeon Geoncheol serving as the CEO and legal representative. After the acquisition of shares from LG Chemical, Aekyung Chemical is currently the largest shareholder of VPCHEM, holding a 50% stake. Meanwhile, Southern Fertilizer owns 35% of the capital, and PV Oil holds the remaining 15%.
According to the introduction on the website, VPCHEM currently has a plasticizer production facility in Go Dau Industrial Park, Long Thanh, Dong Nai, and two branches in Ho Chi Minh City and Hanoi. The company specializes in the production and trading of plasticizers mainly for the PVC industry, with a capacity of 120,000 tons per year.
As for Aekyung Chemical, this company also operates in the chemical industry and is a subsidiary of the Aekyung Group (South Korea). The company established its Vietnamese legal entity, AK Vina, in Dong Nai in 2003.
