LG Chem share price falls nearly 2% after deadly gas leak in India
SEOUL: The share worth of South Korean chemical compounds and battery maker LG Chem Ltd dropped virtually 2% on Thursday after a gasoline leak at a manufacturing unit operated by a unit in India killed no less than 9 folks, and led to a whole lot extra being handled in hospital.
The leak was introduced underneath management after being found by a upkeep employee on the evening shift on the LG Polymers plant, exterior the east coast metropolis of Visakhapatnam, in India`s southern Andhra Pradesh state, based on an organization spokesman.
Police in India stated that 9 folks died, and emergency companies rushed greater than 300 folks, largely villagers residing close by, to hospitals. Around 1,500 folks had been evacuated from their houses.
The firm spokesman stated manufacturing on the plant had been suspended due to India`s nationwide lockdown to cease the unfold of the coronavirus outbreak, nevertheless it was getting ready to renew operations.
LG Chem stated in a press release that the gasoline emitted within the leak could cause nausea and dizziness when inhaled. It stated it was in search of to make sure casualties obtained therapy shortly.
“We are currently assessing the extent of the damage on residents in the town and are taking all necessary measures to protect residents and employees in collaboration with related organizations,” LG Chem stated within the assertion.
The firm added it was investigating the reason for the accident.
Shares in LG Chem, South Korea`s main petrochemical maker by capability, ended down 1.94 % in a flat broader market.
The firm provides electrical automobile batteries for General Motors and Volkswagen and others. Its home peer Lotte Chemical ended flat.
Analysts say the incident mustn’t have a significant impression on LG Chem`s backside line, because it didn’t have an effect on main operations, however they had been cautious of any potential fallout.
“Given that casualties are large, eyes are on whether this will lead to any criticism within India,” Hwang Yu-sik, an analyst at NH Investment & Securities in Seoul stated.
“It’s not clear yet the amount of compensation for losses to residents, and if it halts operations, opportunity loss won’t be much, less than 10 billion won ($8.17 million) as it’s a small one,” Roh Woo-ho, an analyst at Meritz Securities.
LG Chem took over Hindustan Polymers and renamed it as a LG Polymers India Private Limited (LGPI) in 1997, and the Indian unit posted a income of 223 billion gained ($181.95 million) and a web revenue of 6.three billion gained final yr.
LG Chem is an affiliate of LG Electronics, a smartphone maker.
An explosion in 2012 at a LG Chem plant in South Korea making supplies for smartphone shows, killed eight folks and injured three, based on a court docket doc.
A yr in the past, rival Hanwha Total Petrochemical suffered a leak from a styrene monomer unit at its plant in South Korea, resulting in a whole lot of staff and residents being handled in hospital.
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