As part of the new supply plan, LG Chem will begin delivering the lightweight, shock-resistant plastic in its pellet state to a processing facility. Once there the secondary company will refine the material, delivering it to Stratasys in a ready to print state.
Although the Korean firm already captures a dominant share of ABS sales originating from the peninsula, the company expanded its supply potential by investing in a new ABS producing facility in China’s Guandong province. When operating at full capacity the joint venture between LG Chem and China’s state-owned National Offshore Oil Corp will produce 150,000 metric tons of ABS annually.
Armed with its new facility, LG Chem looks to be a major player in the 3D printing materials market, which is primed to grow in coming years. In fact, according to a recent study published by Markets and Markets, the global 3D printing materials business could be worth upwards of $400M by 2018. With many patents surrounding 3D printing materials set to expire in the coming years LG Chem is positioning itself to make a big play in the 3D printing market.
While it will likely be many years before LG Chem gains a sizable market share, ABS plastic looks like it will remain a high consumption material in the world of 3D printing for the foreseeable future. Developing strong relationships with major players like Stratasys and ramping up supply potential will only help strengthen LG’s potential in the 3D printing market.
Image Courtesy of LG Chem