Arm of Samsung’s Materials Business
Cheil Industries, the key subsidiary of the Samsung Group in the materials industry, appointed Samsung Electronics Vice President Jo Nam-seong as its new head. He has led the electronic components business of Samsung Electronics for almost three decades. Under the circumstances, Cheil Industries is expected to turn itself into a company specialized in electronics component manufacturing at a more rapid pace.
The appointment has much to do with the business direction Cheil is following these days. The company has recently completed the acquisition of Novaled, a global leading OLED technology developer, and transferred its fashion business to Everland on December 1. Including the 1.05 trillion won (US$989 million) received in return, a total of 1.8 trillion won (US$1.7 billion) is planned to be invested in its electronics materials business for three years to come. The major investment targets include OLED and polarizer film technologies.
The materials segment is increasing its sales ratio in the company, too. Back in 2004, the electronics materials business unit accounted for just 6.4% of its total sales, but the figure has risen to 26.6% by the end of the third quarter of 2013. The operating profits of the division are equivalent to 66.6% of the total.
The naming of the new CEO, who has a thorough knowledge of Samsung Electronics and its business direction, is likely to boost the synergy and cooperation between Cheil Industries and the electronics manufacturer. Moreover, Cheil is expected to take a pivotal role in setting up the electronics materials research center that it is constructing with the help of Samsung Electronics, Samsung SDI, and Samsung Fine Chemical.