Introduction to LG International
LG is a leading business group in Korea which was founded in 1947.
Its major affiliates are LG Electronics, LG Chemical, LG Display and
LG International.
These affiliates have global top tier competitiveness in LCD / OLED
televisions, home appliances, smart phones, rechargeable batteries
and mobile telecommunication services.
Currently, LG International is fostering natural resources
development and industrial infrastructure business proactively.
About LG
MARKET-LEADING LG
REVENUE
NETWORKS
142 billion USD
409 operations
60 countries
EMPLOYEES
230,000 employed
About LG
KEY AFFILIATES
(Revenue for 2018 in KRW trillion)
LG Innotek
61
TV, Smart Phones,
Home Appliances
24
Electronics
LG U +
LG Household &
Health Care
LG Display
8
LG CNS
LG Hausys
28
Chemicals,
Batteries
7
Chemicals
3
10
Resources,
Infra & Industrial
12
3
Communications
& Services
* Since its inception in 2003 as a holding company. LG has gone on to broaden its portfolio in
Electronics, Chemicals, Communications & Services while strengthening its expertise in each field
and working to create customer values along the way.
About LG
LG Way
LG Way is the call to becoming a premier company; hence the essence of its strategic vision is
embodied in NO.1 LG. At its foundation is the management principles of Customer-Value Creation
and People-Oriented Management, which are in turn implemented according to the high ethical
standards of behavior delineated by Jeong-Do Management.
Vision
The ultimate goal of LG is to be recognized
as the market leader in business performance
as well as in management practices.
Behavioral
Mode
Ethical management and code of conduct
To enable capability development and fair
Competition.
Management
Principle
The fundamental organizational principle
guiding LG from beginning as a firm.
“Jeong-Do” Management encompasses more than ethical management; it also means cultivating competencies
that produce concrete outcomes, enabling the company to excel competitively.
Since its establishment in 1953,
LG International has paved the foundation of the Korean economy
through trading fiber and home products.
It has played a leading role in the national economy through tapping
into high-potentials areas.
Recently, LG International has been securing a sustainable competitive
advantage through two business pillars: natural resources business and
industrial infrastructure business.
About LG International
BUSINESS STRUCTURE
RESOURCES
Palm
Metals
Coal
Oil & Gas
INFRA & INDUSTRIAL
Chemicals
IT
Project
Automotive
RESOURCES BUSINESS
PALM
COAL
Palm plantation of PT.PAM, Indonesia
METALS
OIL & GAS
Coal mine of PT.GAM, Indonesia
Gas field of Block 11-2, Vietnam
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ PT.PAM, Indonesia
“AIM TO BE A MAJOR PLAYER IN PALM OIL INDUSTRY”
Based on our operating experience in palm plantation and CPO Mill (Crude
Palm Oil production plant) in Indonesia, we plan to acquire 50,000 ha of
plantation area and produce 350,000 tons of CPO by 2025
WHAT WE DO
■
PALM PLANTATION – INVEST / DEVELOP / OPERATE
- Expand production volume by enhancement in productivity and investment in new plantation
■
OPERATE CPO (Crude Palm Oil) MILL
- Plan to build additional CPO mill
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ PT.GUM, Indonesia
KEY ASSETS
ASSET
COUNTRY
LOCATION
PHASE
SHARE RATIO(%)
CONCESSION
AREA
COMMENCEMENT
PT. PAM
Indonesia
West Kalimantan
95
20,000ha
2009
PT. GUM
Indonesia
West Kalimantan
95
17,000ha
2018
PT. TBSM
Indonesia
West Kalimantan
Production
Production
/ Development
Production
95
8,000ha
2018
CPO PRODUCTION
2016~2020
CONCESSION AREA
2016~2020
200
(Unit: thousand tons)
(Unit: thousand ha)
60
130
45
86
68
2016
2017
2018
2020
(E)
20
20
2016
2017
2018
2020
(E)
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ PT.MPP, Indonesia
“TO BECOME A MAJOR COAL PRODUCER & TRADER
IN ASIA BY DOWNSTREAM EXPANSION”
Based on our successful mining operations in Indonesia and China,
we will expand coal mine investment while investing in the downstream such
as coal power plants, coal terminal, etc.
WHAT WE DO
■
COAL MINES – INVEST / DEVELOP / OPERATE
- Targeted regions : Indonesia, China, Australia, etc.
■
COAL TRADING
- Origins : Indonesia, Australia, Russia, China, etc.
- Markets : Korea, China, Japan, India, Southeast Asia
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ PT.GAM, Indonesia
KEY ASSETS
(Unit: million tons)
ASSET
COUNTRY
ANNUAL
PRODUCTION
MINABLE
RESERVES
SHARE RATIO(%)
PHASE
Ensham
Australia
5
150
15
Production
1983
PT.MPP
Indonesia
2
-
75
Production
2007
Wantugou
China
4
130
30
Production
2008
PT.GAM
Indonesia
7
210
60
Production
2012
Rain(Insani)
Indonesia
1
90
5
Production
2019
Total
-
19
580
-
-
-
TRADING VOLUME
2014~2020
14
11
(Unit: million tons)
7
2014
8
2015
COMMENCEMENT
12
9
2016
2017
2018
2020
(E)
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ Tianjin steel processing plant, China
“PROVIDING CUSTOMIZED SERVICE BY INVESTING IN STEEL
PROCESSING PLANTS AND NON-FERROUS METAL MINES”
Concentrating on marketing activity to end users with high value-added
products. At the same time, we are operating steel processing plants to
provide better service for customers
WHAT WE DO
■
STEEL PROCESSING PLANT OPERATION
- Location : China (Tianjin, Guangzhou), Vietnam, India and Poland
■
NON-FERROUS METAL INVESTMENT
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ Guangzhou steel processing plant, China
KEY ASSETS
ASSET
Tianjin
Steel Processing Plant
COUNTRY
China
ANNUAL
PRODUCTION
110 KMT
POSCO-PWPC
Guangzhou
Steel Processing Plant
China
POSCO-IPPC
Haiphong
Steel Processing Plant
POSCO-IPPC
POSCO-PWPC
Tianjin
80 KMT
Vietnam
60 KMT
India
380 KMT
Poland
80 KMT
Guangzhou
Haiphong
Steel Processing Plant
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ LNG Project, Qatar
“SEEKING FOR INVESTMENT OPPORTUNITIES IN
TARGETED REGIONS BASED ON TECHNICAL CAPABILITIES”
Stretching further into targeted regions through strategic partnership
with companies having regional expertise
WHAT WE DO
■
OIL & GAS UpStream/ MidStream – INVEST / DEVELOP
- Targeted regions : Middle East, Southeast Asia, North America etc
- Focused on development / production stage with Strategic Partner
RESOURCES BUSINESS
PALM
COAL
METALS
OIL & GAS
▲ Block 11-2, Vietnam
KEY ASSETS
ASSET
COUNTRY
STATUS
Block 11-2
Vietnam
Production
LNG Project
Qatar
Production
ADA
LNG Project
Block 11-2
ADA
Kazakhstan
Production
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
Petrochemical plant in Kiyanly, Turkmenistan
IT
AUTOMOTIVE
Coal-to-Chemical plant, China
Wuwei Thermal Power Plant in Gansu, China
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
▲ Coal-to-Chemical plant, China
“REINFORCING BUSINESS STABILITY BY FOCUSING ON KEY
ITEMS, WHILE LOOKING FOR INVESTMENT OPPORTUNITIES
IN CHEMICAL PLANT AND OFF-TAKE RIGHTS”
Based on our expertise in trading, we have secured off-take rights by acquiring
stake in coal-to-chemical plant in Inner Mongolia and winning orders for gas
treatment, ethane cracker and PE/PP plants in Turkmenistan
WHAT WE DO
■
SECURE PRODUCT SALES RIGHT THROUGH
DEVELOPMENT AND INVESTMENT IN CHEMICAL PLANTS
- Fertilizers (Urea, Sulfur, etc.) PE, PP etc.
■
CHEMICALS & PETROCHEMICALS TRADING
- Methanol, MTBE, Refrigerant, PET, Organic / Inorganic chemicals
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
▲ Gas processing plant, Turkmenistan
KEY ASSETS
ASSET
COUNTRY
PRODUCTS
CAPA
(MT/YEAR)
OWNERSHIP
PHASE
Coal-to-Chemical plant
China
Urea
940K
29%
Production
Oman PTA
Oman
PTA
1,100K
30%
Development
LG Bohai
China
PVC
400K
10%
Production
OFF-TAKE STATUS
ASSET
COUNTRY
PRODUCTS
CAPA
(MT/YEAR)
OFF-TAKE
(MT/YEAR)
PHASE
Oman PP
Oman
PP
340K
80~90K
Production
Oman PE/PP
Oman
PE/PP
1,500K
150K
Construction
(contracted)
Turkmenistan
Petrochemicals
Turkmenistan
PE/PP
470K
235K
Production
* Details of the Turkmenistan Petrochemicals Project are still undecided.
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
▲ Hasang Hydroelectric power plant,
Indonesia
“PROJECT DEVELOPER IN THE FIELD OF
POWER GENERATION BUSINESS AND INDUSTRIAL
INFRASTRUCTURE PROJECT”
The company takes significant role in developing industrial infrastructures
to accelerate industrialization in each emerging market
WHAT WE DO
■
PROJECT DEVELOPMENT
■
FEEDSTOCK SOURCING
■
EQUITY INVESTMENT
■
PROJECT FINANCING
■
EPC, O&M ORGANIZING
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
▲ Musandam IPP Plant, Oman
KEY ASSETS
ASSET
CAPA
FUEL
PRODUCTS
OWNERSHIP
PHASE
Oman Musandam
IPP Plant
120MW
Gas/Diesel
Power
30%
Operation
China Wuwei
Thermal Power Plant
700MW
Coal
Power/Heat
30%
Operation
Water
Power
95%
Construction
Coal
Cement
51%
Production
Indonesia Hasang
Hydroelectric Power Plant
Myanmar
Cement Plant
41MW
450,000TON/year
KEY BUSINESS
Classification
IPP PROJECT
INDUSTRIAL INFRASTRUCTURE
BUSINESS
TYPE
▪ Development of IPP Projects through
investment and EPC participation
▪ Infrastructural development in strategic region
STRATEGIC
REGION
▪ Southeast Asia.
▪ Southeast Asia.
EXAMPLES
▪ Gas-Diesel Power Project
▪ Hydro-electric Power Project
▪ Water/Wastewater Treatment Plant
▪ Natural resources related Infrastructure
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
“SOURCING MAIN COMPONENTS FOR TV, MOBILEPHONE,
PC AT COMPETITIVE CONDITIONS WHILE SUPPLYING TO OUR
CUSTOMERS IN A TIMELY MANNER”
In addition, we are creating values to our vendors and customers by optimizing cost
structure through our Vendor Management Inventory(VMI) service
WHAT WE DO
■
ITEMS : LCD PANEL, ELECTRONIC EQUIPMENTS AND ELECTRON MATERIALS
■
INTEGRATED PROCUREMENT AND CUSTOMIZED LOGISTICS OPERATION
(Sourcing Suppliers, Purchase, Procurement, Stock, Supply Management)
■
FINANCING AND RISK MANAGEMENT
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
▲ Nanjing HUB Warehouse, China
VMI APPLICATION SCOPE
JIT* SCOPE
PRODUCTION
/ RELEASE
SHIPPING
TRANSIT
CARRY
-IN
STORAGE
CUSTOMS CLEARANCE
CARRY
-OUT
LINE
WAREHOUSE
HUB
*JUST IN TIME
MAJOR CLIENTS
LG Electronics, LG Display, BOE, AUO, Innolux, CSOT, Sharp, Canon, Qualcomm, Nichia, CDOT, Sunny Oppotech,
HLDS, HP, Lenovo, DELL, Apple, Acer etc.
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
AUTOMOTIVE
“INTEGRATED SOLUTION PROVIDER TO AUTOMAKER”
In cooperation with LG automotive affiliates and leading partners,
we provide integrated solutions from engineering to parts supply
including material supply
WHAT WE DO
■
ENGINEERING
- Engine, Powertrain, Vehicle, Manufacturing
■
PARTS SUPPLY
- EV powertrain, Engine parts, Powertrain parts, Electric & Stamping parts, Material supply
INFRA & INDUSTRIAL BUSINESS
CHEMICALS
PROJECT
IT
MANUFACTURING
ENGINEERING
AUTOMOTIVE
ENGINE & POWERTRAIN
ENGINEERING
EV
POWERTRAIN
PARTS
SUPPLY
VEHICLE
ENGINEERING
MATERIAL
SUPPLY
AFFILIATES
LG Electronics
Achievements
WORK SCOPE
EV Powertrain / Infotainment
LG Display
In-Vehicle Display
LG Innotek
Motor & Sensor / LED Lighting
LG Chem
Automotive Battery
LG Hausys
Plastic engine parts / Seat skin
India
▪ EV chassis, Engineering & Parts supply
▪ TATA, M&M, Ashok Leyland, ESSEL
China
▪ Engineering & Powertrain parts supply
▪ ChangAn, FAW, JAC, Geely
Russia
▪ Engine development, Engineering & Parts supply
▪ AvtoVAZ, UAZ, ZMZ, GAZ
APPENDIX
SOCIAL
CONTRIBUTION
FINANCIAL
HIGHLIGHTS
GLOBAL
NETWORK
‘Bridge of Love’ in Sekadau near the Palm Plantation, Indonesia
SOCIAL CONTRIBUTION
LG International continually communicates with local communities at home
and abroad and participates in diverse social contribution activities.
In particular, Indonesia and Myanmar, where its operating investment
corporations are located, LG International fosters projects to improve living
environments and establish infrastructure for economic development based
on detailed analysis of local cultures and social issues. It further strives to
establish shared values with local communities.
LG International will continue to develop programs that have concrete
impacts on local economies, while taking into account the concerns of these
communities.
LGI(HQ) employees, conduct volunteer work
for the disabled and the disadvantaged
LGI(HQ) employees, conduct voluntary service
for disabled person’s work adjustment training
Indonesia PT. PAM
(Palm Plantation and CPO Mill)
Supports for revamping a
wooden bridge
Medical volunteering services
Cement Plant in Myanmar
Indonesia PT. MPP
(Bituminous coal mine)
Support for teachers’ salary
Construction of an Islam temple in
Zmbayam Dalam Village
Medical supports for local residents
Indonesia PT. GAM
(Bituminous coal mine)
Delivery of school supplies to
Elementary school students in
Smbba Yangwoo Village
Repair of a wooden bridge in
Bumi Etam Village
Scholarships to high school students
Support for medical facilities for
low-income patients
Repair of local roads
Donation of daily necessities to
Karangan flood victims
FINANCIAL HIGHLIGHTS
BALANCE SHEET (CONSOLIDATED)
(Unit: KRW billion)
ITEMS
2016
2017
2018
ASSETS
5,177.3
4,967.6
5,038.1
CURRENT ASSETS
2,672.0
2,554.2
2,558.4
NON-CURRENT ASSETS
2,505.3
2,413.4
2,479.7
LIABILITIES
3,531.9
3.382.1
3,488.5
CURRENT LIABILITIES
2,098.3
2,130.3
2,167.4
NON-CURRENT LIABILITIES
1,433.6
1,251.8
1,321.2
EQUITY
1,645.4
1,585.5
1,549.5
INCOME STATEMENT (CONSOLIDATED)
(Unit: KRW billion)
ITEMS
2016
2017
2018
SALES
11,966.7
12,827.2
9,988.2
GROSS PROFIT
745.9
750.6
711.1
OPERATING PROFIT
174.1
212.3
165.7
NON-OPERATING PROFIT
(40.9)
(34.4)
(9.1)
PROFIT BERFORE TAX
133.2
177.9
156.6
84.8
88.2
(36.0)
NET INCOME
GLOBAL NETWORK
Moscow
Europe
Istanbul
Ashgabat
Seoul (HQ)
Japan
Shanghai
Beijing
Erdos
Guangzhou
Shenzhen
Dubai
Muscat
Mumbai
Yangon
Bangkok
U.S.A.
Taipei
Hong Kong
Ho Chi Minh
Singapore
Jakarta
Subsidiary
Head Office and
Subsidiaries
7
15
Branch
Branches
Liaison Office
Liaison Offices
6
(As of June 2019)
GLOBAL NETWORK
4
2
2
2
3
1
2
3
3
1
1
3
5
1
4
2
2
1
1
3
Investment
Assets
4
21
(As of June 2019)
Metals
Coal
1
MPP mine in Indonesia
2
GAM mine in Indonesia
3
Wantugou mine in China
4
Ensham mine in Australia
Palm
1
PAM plantation in Indonesia
2
GUM plantation in Indonesia
3
TBSM plantation in Indonesia
1
2
Tianjin steel processing plant in China
Guangzhou steel processing plant in China
3
Haiphong steel processing plant in Vietnam
4
POSCO-PWPC in Poland
5
POSCO-IPPC in India
Oil / Gas
1
2
3
Block 11-2 in Vietnam
ADA in Kazakhstan
LNG project in Qatar
Chemicals & Project
11
PTA plant in Oman
2
Coal-to-Chemical plant
in China
Power & Infra Project
1
Musandam IPP in Oman
2
Wuwei IPP in China
3
Cement plant in Myanmar
4
Hasang hydroelectric power
plant in Indonesia