Seoul: LG Chem Ltd., South Korea's leading chemical company, announced its decision to sell its water solutions business unit to Glenwood Private Equity for 1.4 trillion won (US$1.02 billion) as part of its business reorganization efforts. The decision was finalized at a board meeting and marks a strategic move for the company as it seeks to realign its focus on other burgeoning sectors.

According to Yonhap News Agency, the sale decision was made official two months after Glenwood Private Equity was selected as the preferred bidder in April. A spokesperson for LG Chem emphasized that the divestment aligns with the company's strategic priority to concentrate on three key growth areas: battery materials, environmentally sustainable materials, and new pharmaceuticals.

The water solutions unit has been a part of LG Chem's advanced materials business division and is known for producing reverse osmosis (RO) membranes. These thin plastic films, with extremely small pores, are crucial for modern desalination processes. The unit's sale is expected to allow LG Chem to better allocate resources towards its other advanced materials businesses, which include cathode and electronic materials.