LG Chem acquires U.S. automotive adhesive material producer

Lim Chang-won Reporter Posted : 2018-09-12 10:50 Updated : 2018-09-12 10:50
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[Courtesy of LG Chem]

SEOUL -- LG Chem, a top car battery maker in South Korea, diversified its business into the automotive adhesive and sealant market by acquiring Uniseal, a U.S. company which has provided products to General Motors and other carmakers in North America.

LG Chem said Wednesday that it signed a stock purchase agreement to acquire a 100 percent stake in Uniseal from its parent company, Koch Enterprises. Financial terms were not disclosed. The American company is known for high-performance automotive adhesive solutions.

With the acquisition of Uniseal, LG Chem can establish a bridgehead to enter the fast-growing automotive adhesive market and accelerate the production of high-performance adhesive materials. The South Korean company produces automotive interior and exterior materials as well as adhesive tapes for electric vehicle batteries.

"Automotive adhesives are a promising material business, which is growing rapidly due to the light weight of vehicles," LG Chem vice chairman Park Jin-Soo said in a statement. "We will nurture it as a world-class business through continuous investment."