LG Chem Wins Bid For An Exclusive Deal For Reverse Osmosis Filters At 8 Million Dollars
On Sunday, LG Chem announced acquiring $8 million worth of new orders for water purification filters from eight desalination projects from different countries, including Israel, Spain, Malta, Egypt and Mexico, reported Korea Herald Nov. 1
The company is set to manufacture around 17,000 reverse osmosis filters in its Cheongju, North Chungcheong Province factory by the end of 2016, shipping the first batch on Oct. 30.
The water purification technology, reverse osmosis, utilizes a semipermeable membrane to filter out large particles, including bacteria, in order to produce potable water.
The large bulk of water purification filters orders from LG Chem is enough to purify 200,000 tons of seawater daily and an estimated 150,000 households will be benefiting from the project.
"The latest deal will pave the way for LG Chem to increase the company's footstep in other countries. LG aims for 10 percent of the global RO filter market share by 2020," said C.S. Song, head of LG Chem's public relations office.
Korea Times noted Nov. 1 that LG Chem won the bid for exclusive deals with the eight projects and it is considered the company's biggest reverse osmosis filter deal since the completion of the 40 billion won Cheongju factory in August.
The deal was a result of an increasing demand for water treatment equipment as the market for reverse osmosis filter increases by 10 percent yearly, amounting to 1.2 trillion won in 2014 and is expected to increase to 1.8 trillion won by 2018.
LG Chem entered the water treatment industry when it acquired the U.S.-based clean water startup NanoH20 in April 2014, which uses nanotechnology for the production of membranes needed for water purification. This enabled the company to secure patents for developing reverse osmosis filters for industrial and commercial purposes.
LG Chem plans to establish their global presence in the water purification industry by securing deals with 17 more countries, including the U.A.E., Singapore and Spain.
"This large-scale exclusive deal proves our global competitiveness in RO filter production," said LG Chem vice chairman Park Jin Soo. "We will continue to invest in related R&D to become a top-tier player in the field."
