Thursday, August 1st, 2013
SEOUL, KOREA - LG International Corp., a trading arm of LG Group, said on July 31 that it has decided to buy a 29-percent stake in a urea plant owned by Boyuan Group of China at US$92 million to move into the coal-based chemical market there.
Under construction in the Neimenggu (Inner Mongolia) region, the 560,000-square-meter Bodashidi plant will be completed by October this year and produce 940,000 tons of coal-based urea, the main ingredient of fertilizer, starting next year. Most of the urea to be produced in the plant will be sold in China, with the remaining balance to be exported elsewhere to Korea and Southeast Asia.
Boyuan Group is a private company with 51 affiliates in the areas of energy resource development, chemical, and real estate. Earlier in April last year, LG International had signed an agreement with Boyuan Group to tap the Chinese coal-based chemical market. In 2008, the Korean company had purchased a 30-percent stake in the Inner Mongolia's Wantugo bituminous coal mine owned by Boyuan Group.