LG Chem Ltd., South Korea's biggest chemical firm, said Sunday it will produce biodegradable plastics after joining hands with a smaller local chemical company in a move to expand its presence in the eco-friendly product market.

Under the partnership with TK Chemical Corp., LG Chem will develop and produce poly butylene adipate-co-terephthalate (PBAT).

PBAT are synthetic polymers based on fossil resources and can naturally degrade within six months after buried in soil.

The two companies said they plan to establish a PBAT production facility in South Korea by the second half of 2022.

LG Chem and TK Chemical also agreed to cooperate in other biodegradable composite materials productions.

LG Chem last month announced it will build a PBAT factory with annual production capacity of 50,000 tons and targets to begin mass-production from 2024.

TK Chemical is a subsidiary of South Korea's SM Group that is known for producing chemical fibers. (Yonhap)