Tostem and LG Chem Starts Al Building Material JV in Korea

Tostem Corporation of Japan and LG Chemical of South Korea co-announced on Wednesday that they concluded a joint venture contract to sell aluminium architectural materials and industrial aluminium products in South Korea. In the country, aluminium sash demand is growing along the increase of high-rise building constructions. The JV aims annual revenue at 120 billion won (approximately 12 billion yen) in 2012 by combining Tostem’s productive technology and LG Chem’s sales force. The JV eyes the sales expansion for overseas markets in future.

The JV, whose name is “LG-Tostem BM,” will be headed in Soul and established in April 2009 with initial 25 employees. The capital is 6 billion won (approximately 600 million yen), 51% shared by LG Chem and 49% by Tostem. The JV will become a subsidiary of LG Hausys. LG Chem schedules to spin off its industrial business unit into LG Hausys on 1 April.

LG-Tostem initially purchases aluminium products from outside makers. Tostem provides its technology to subcontract makers at the first phase. After the sales volume grows up, the JV examines construction of its own plant.

LG Chem is one of core companies of LG Group. The company sells plastic sashes and other architectural materials to construction companies. LG Chem aims to expand aluminium architectural material business while Tostem targets reinforcement of overseas sales.