LG Chem and CJ CheilJedang establish new JV to commercialize bio-nylon

LG Chem and CJ CheilJedang signed a Heads of Agreement (HOA) for the establishment of a joint venture dedicated to the production and sales of PMDA (Pentamethylenediamine), an eco-friendly bio-nylon produced by fermenting corn, sugarcane and other crops.

LG Chem and CJ CheilJedang signed a HOA for the establishment of a joint venture for the production and sales of PMDA.

Through this agreement, both companies aim to secure stable business competitiveness by being the first domestic companies to produce everything from raw materials to products for bio-nylon.

CJ CheilJedang will produce PMDA using microbial precision fermentation technology and joint development technology, while LG Chem will polymerize it to produce and sell bio-nylon.

The bio-nylon features same heat resistance and durability as petroleum-based nylon. It is suitable for use in a wide range of fields including textiles, automobiles, electronic devices and more.

Increasing demand in bio-nylon

With recent implementation of global environmental policies and the mandatory disclosure of carbon emissions Scope 3 in the United States and Europe, it is expected to continuously drive the demand for eco-friendly products.

The global market demand for bio-nylon is expected to record a high annual growth rate of 29%, expanding from 400,000 tons in 2023 to 1.4 million tons by 2028.