LG Chem Ltd., South Korea's leading chemical firm, said Thursday it will invest 2.6 trillion won ($2.2 billion) by 2028 to step up its domestic manufacturing capacity for eco-friendly materials.

LG Chem said it will build 10 new chemical factories in Seosan, about 140 kilometers southwest of Seoul, to produce biodegradable materials and other materials used in renewable energy.

Among them are poly butylene adipate-co-terephthalate (PBAT), a biodegradable plastic used in decomposable packaging, and polyolefin elastomer (POE), which is broadly used for photovoltaic films, auto exteriors, wire coatings, footwear etc.

LG Chem said it will break ground for a PBAT factory and a POE factory within this year with a goal of beginning commercial operations in 2024.

The new POE facility with 10,000 tons of annual capacity is expected to raise its total production to 380,000 tons a year, which will make the firm the world's No. 2 POE supplier, LG Chem said. (Yonhap)