LG Chem, Partners to Build $4.2 Billion Kazakhstan Complex

LG Chem Ltd. (051910), South Korea’s biggest chemical company, plans to build a $4.2 billion petrochemical complex in Kazakhstan with two partners.

The project will be funded by $2.97 billion of loans and $1.27 billion of investment by the venture partners, LG Chem said in a regulatory filing in Seoul today.

LG Chem plans to pay 716.9 billion won ($636 million) for a 50 percent stake, while Kazakhstan’s state-run United Chemical Co. and privately held SAT will each own 25 percent, according to the filing.

The proposed project in the Atyrau area will produce 800,000 metric tons a year of polyethylene, a raw material used to make plastics, LG Chem said.

To contact the reporters on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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