LG Chem announced on Friday that it will sell its water solutions business to Glenwood Private Equity for 1.4 trillion won ($1 billion), reports The Korea Herald.
The decision is part of the company’s strategy to streamline its operations and concentrate on core areas.
According to a regulatory filing, LG Chem’s board approved the sale of the water solutions unit—part of its advanced materials division—to Korea Water Solution Holdings, a special purpose company established by Glenwood PE.
The unit focuses on producing reverse osmosis membranes, which are used in seawater desalination and industrial wastewater treatment. It is currently recognized as the world’s second-largest player in the sector and generated 222 billion won in revenue in 2024.
LG Chem noted that the sale aligns with its broader portfolio restructuring efforts. The company said it aims to concentrate on three key growth areas: eco-friendly materials, battery materials, and innovative pharmaceuticals. It described the move as part of a “selection and concentration” strategy in response to challenging conditions in the petrochemical and battery markets.
Glenwood PE has previously acquired other business units spun off from major conglomerates, including LG Chem’s diagnostics business and water treatment subsidiary Techcross. The firm plans to invest an additional 200 billion won in the Water Solutions unit to expand its production capacity.
