Hanwha Chemical merges two chemical compounds businesses in South Korea
South Korea-based Hanwha Chemical has merged two of its chemical compounds businesses, Hanwha Next and Hanwha Compound.
The combined entity, named Hanwha Compound, will produce polyethylene, polypropylene, polyvinyl chloride, and acrylonitrile butadiene styrene.
The company will operate manufacturing plants in Yeosu and Suncheon, with an annual capacity of 100,000t.
Hanwha Compound CEO Chung Yoon-hwan was quoted by the Korea Times as saying: "With the merger, we will focus our all potentials on compound business, thus leaping into a company that takes the lead in producing high value-added engineering plastics and super engineering plastics products."
The company expects the merger to improve management efficiency across its petrochemical affiliates and related businesses.
Since 2007, the chemical compounds market increased at an annual rate of 6%, driven by demand for lightweight components in the automotive sector.
Manufacturers in the smartphone, tablet computer, and construction materials markets are increasingly opting for advanced chemical compounds.
Demand for chemical compounds is estimated to increase to 740,000t in 2016, compared to 400,000t in 2007.
Earlier this year, Hanwha acquired a 57.6% stake in Samsung General Chemicals from Samsung Electronics and Samsung Corporation.
Hanwha is currently focused on increasing the competitiveness of its units.
The company is looking to share utilities, such as electricity and water, across its chemical plants, including former Samsung plant in Ulsan, reported Korea IT Times.