South Korea’s LG Chem Ltd. said Monday that it will invest 124.6 billion won ($94 million) to expand its manufacturing facility for its key filter membrane product used in water desalination.

A reverse osmosis membrane filter (RO membrane) uses pressure to push seawater through a filter to convert it into freshwater. While osmosis pressure typically involves moving from a low concentration to a high concentration, the process is reversed for freshwater conversion, leading to the term “reverse” osmosis.

The equipment employs a membrane to allow only water molecules to pass through, effectively treating water. Reverse osmosis filters are used in industrial water production and wastewater reuse.

LG Chem entered the water treatment business in April 2014 by acquiring NanoH2O Inc., a U.S. company with unique technology in the field of reverse osmosis filters for seawater desalination.

In 2015, LG Chem started commercial operations of a dedicated plant in Cheongju, North Chungcheong Province, and completed an expansion of the plant’s second line in 2017. The latest expansion marks the third capacity expansion.

LG Chem plans to invest 124.6 billion won by 2025 to establish a new production line at the Cheongju plant. The move will allow the company to produce an additional 400,000 units of filters annually.

“The planned capacity of 400,000 RO membranes is enough to desalinate 1.57 billion tons of water per year, or 4.32 million tons per day, which is enough to serve around 16 million people, or one-third of the Korean population,” said an unnamed official from LG Chem.

With the expansion, LG Chem aims to double its reverse osmosis filter business, currently worth 200 billion won, in the next five years. The new facility is expected to take the form of a smart factory with automation processes based on artificial intelligence (AI) and digital transformation (DX).

LG Chem also plans to expand its business into areas such as carbon dioxide separation, in addition to the secondary battery industry.

By Seo Jin-woo and Yoon Yeon-hae

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