Chemicals group sets brisk pace for others to follow

South Korean Companies usually conjure up a serious and conservative image when it comes to management style and senior executive appointments.

But LG Chem Ltd, the country's biggest chemical manufacturer, believes in being more flexible, and that localization is key to continue its robust growth in China's markets.

The company appointed Zhu Zhiyong as vice-president of its China plant on Dec 1. This is the highest position to be held by a Chinese citizen in the group's business in China.

Zhu, who majored in chemistry at Nanjing University and speaks fluent English, said LG Chem had benefited through globalization.

He said that is because the group had developed an ability to go "local" in many countries and regions where it operates. As a result, about 45 percent of its 26,660 personnel are from around the world.

"Each time our group develops a business in a country, it always strategically aligns itself with the vision of the government," said the 47-year-old executive.

"After that, we build a local foundation through efficient communications with local business partners and various corporate social responsibility activities."

Zhu, who joined the company in 2004, will be in charge of the operation of the company's business in LG Chem (Nanjing) Information & Electronic Materials Co.

Previously, he was responsible for the company's production of polarizers, optical filters that are important in the chemicals industry.

"Different business challenges need different leadership styles. Before my current position, I had to work quickly and alone to guide the business through a challenging turnaround," he said.

"But once it had stabilized, I had to open up to a more inclusive and consultative leadership style as we developed a long-term strategy for growth."

Eager to boost its earnings potential, LG Chem will invest more in the production lines of polarizers, new energy batteries and other advanced materials in China - to supply leading domestic companies such as BOE Technology Group Co and Shenzhen China Star Optoelectronics Technology Co.

Zhu said many of these opportunities come from China's growing demand for consumption-related products and services, diversified market channels created by the Belt and Road Initiative, and free trade deals with partner countries, as well as the hunger for more sophisticated homemade industrial products.

LG Chem has so far invested $3.3 billion to establish eight mainland branches and 11 plants.

(China Daily 12/14/2017 page7)