Core Insights - Enilive, a subsidiary of Italy's Eni Group, and South Korea's LG Chem have announced the construction of a new hydrogenated vegetable oil (HVO) and sustainable aviation fuel (SAF) plant in Daesan, South Korea, with an annual capacity of 400,000 tons, expected to be completed by 2027 [1] Group 1 - The joint venture, LG-Enilive Bio-refinery, is responsible for the construction of the plant, which will utilize "Ecofining" technology developed by Eni Group in collaboration with Honeywell UOP, using feedstocks such as used cooking oil (UCO) and other sustainable plant oils [1] - The target applications for the products include acrylonitrile-butadiene-styrene (ABS) for electronics and automotive, ethylene-vinyl acetate (EVA) for sports goods, and superabsorbent polymers (SAP) for hygiene products [1] Group 2 - LG Chem's CEO, Shin Hak-cheol, stated that the company is transforming its product portfolio to build a low-carbon foundation for sustainable growth and profitability [1] - Enilive's CEO, Stefano Balista, emphasized that the new bio-refinery in Daesan will help achieve their 2030 goal of increasing bio-refinery capacity to over 5 million tons annually, with a potential annual production of over 2 million tons of sustainable aviation fuel [1] - Enilive currently operates bio-refineries in Italy and the United States, while also constructing new facilities in Italy and Malaysia [1]

Core Viewpoint - Japan's chemical industry is undergoing significant restructuring, with major companies exiting low-margin businesses and focusing on high-value-added materials and sustainable practices to enhance competitiveness in a challenging market environment [1][5][6]. Group 1: Industry Position and Market Dynamics - Japan's new materials industry holds a leading position globally, particularly in semiconductor materials, specialty chemicals, and carbon fiber, with companies like Toray and Mitsubishi Chemical being key players [1]. - Recent trends show a withdrawal from certain sectors, with major companies like Kuraray and Mitsui Chemicals announcing production halts and business exits, indicating a strategic shift in response to market pressures [2][3]. Group 2: Strategic Adjustments and Future Focus - Companies are restructuring to focus on high-growth, high-margin sectors, with an emphasis on specialty chemicals and sustainable materials, as seen in Mitsui Chemical's plans for a global specialty chemicals business [5]. - The overarching strategy across major firms includes transitioning towards high-performance materials and green technologies, aligning with global trends in energy transition and environmental regulations [4][5][6]. Group 3: Challenges and Market Pressures - The Japanese chemical sector faces challenges such as declining domestic demand due to population decrease and economic downturn, alongside increased competition from rapidly developing Asian markets [3][4]. - The implementation of carbon border adjustment mechanisms and pressures from global carbon markets are further complicating the operational landscape for traditional chemical businesses [4].