Vizag Gas Leak: From 'Hindustan Polymers' to LG Chem - three ownerships in six decades

The company, which is running at the same spot in R R Venkatapuram, on the outskirts of Vizag for about 6 decades has changed hands twice and is now managed by the South Korean home appliances major

Polystyrene, the material produced at LG Chem, Visakhapatnam is used everywhere – in home appliances like refrigerators, washing machines, air conditioners, televisions, computers, car parts and also medical applications.

On Thursday morning, people, especially those residing in the unit’s adjacent villages, realised the dangers of Polystyrene’s base material – styrene monomer – if not handled properly, as toxic vapours billowed out after a major chemical gas leak.

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The company, which is running at the same spot in R R Venkatapuram, on the outskirts of Visakhapatnam for about six decades has changed hands twice and is now managed by the South Korean home appliances major – LG.

The plant was established in 1961 as "Hindustan Polymers" for manufacturing polystyrene and its copolymers. In 1978, it merged with Mc Dowell & Co. Limited of the UB Group.

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The ownership again shifted in 1997. Taken over by LG Chem (South Korea), Hindustan Polymers was renamed as LG Polymers India Private Limited (LGPI).

“LG Chemical considered India as an important market and in its aggressive global growth plan identified Hindustan Polymers as a suitable company for entering the Indian market through 100 percent takeover,” the company says on its website.

LG Polymers India Private Limited’s Vizag unit, its sole production facility in India, is on 213 acres near to the famous Simhachalam temple from which it bought most of the land then.

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The unit which was far away from the city then is now surrounded by dense human habitation. On Thursday, hundreds of people from at least five villages around were gravely affected by the vapours that emanated from LG Chem.

A senior LG Chem official told DH that they follow the highest safety standards and are baffled by the mishap. “However, the primary cause is suspected to be the accumulation of styrene monomer vapours in the empty space of a 2500 MT silo, because of the over 40-days lockdown,” the official said.

The management was preparing for restarting production from Friday and passes were issued for 45 employees. No casualties were reported from inside.

Also Read: Vizag Gas Leak: Styrene polymer harmful but not universally fatal, says AIIMS Director Dr Guleria

Many of our around 500 workers are from neighbouring villages, the source said.

“There is human loss around which is tragic. Being a company of global reputation, we are worried more than anyone else. We follow the highest safety standards but as of now, we are not in a position to comment on how this has happened,” the source said.

LG Chem has 35-40 percent share in India’s Polystyrene business.

LG Chemical has a very strong presence in Styrenics business in South Korea and has plans to establish an equally strong presence in Indian market by current product range of PS and EPS.

Presently LGPI is one of the leading manufacturers of Polystyrene and Expandable Polystyrene in India, according to their website.