LG Chem and ADM to Produce Lactic Acid and Polylactic Acid 

LG Chem, a leading global diversified chemical company, and ADM, a global leader in nutrition and biosolutions, launched two joint ventures for U.S. production of lactic acid and polylactic acid to meet growing demand for a wide variety of plant-based products, including bioplastics. Pending final investment decisions, the joint ventures have chosen Decatur, Illinois, U.S., as the location of their intended production facilities.

The first joint venture, GreenWise Lactic, would produce up to 150,000 tons of high-purity corn-based lactic acid annually. ADM would be the majority owner of GreenWise, and would contribute fermentation capacity from its Decatur bioproducts facility to the venture. The second joint venture, LG Chem Illinois Biochem, would be majority-owned by LG Chem. It would build upon LG Chem’s expertise in bioplastics to build a facility that will use product from GreenWise Lactic to produce approximately 75,000 tons of polylactic acid (PLA) per year.

ADM CEO Juan R. Luciano stated, “Sustainability is one of the enduring global trends that is powering ADM’s strategy and growth. Our BioSolutions platform is helping us meet that demand by redeploying Carbohydrate Solutions production capacity to fast-growing, higher-margin segments – including pharmaceuticals and personal care, textiles and paper products.”

LG Chem Chief Executive Officer Hak Cheol Shin commented, “The establishment of this joint venture is a sustainable growth strategy that can directly contribute in solving environmental issues such as climate change and waste plastics.” 

Global demand for lactic acid – which is used broadly in food, feed and cosmetics in addition to industrials like bioplastics – was valued at approximately USD2.9b in 2021, with an expected annual growth rate of 8%. Global demand for bioplastics and biopolymers is projected to grow from USD10.7b in 2021 to USD29.7b by 2026, representing annual growth of 22.7%.