3 Chemical Affiliates to Be Merged
Aekyung Group announced on Sept. 6 that it will launch Aekyung Chemical in November after merging three chemical affiliates -- Aekyung Petrochemical, AK Chemtech, and Aekyung Chemical.
Aekyung Chemical (tentative name) will be created as a chemical company with annual sales of about 1.7 trillion won in 2021. It targets four trillion won in sales by 2030.
Aekyung Group aims to make Aekyung Chemical a global leading chemical company by expanding its production facilities, including those in China, Vietnam and India, and integrating the business expertise of the three affiliates.
In China, the group is expanding its production facilities for phthalic anhydride (PA). The expanded plant will have an annual production capacity of 70,000 tons and start full-scale operations in 2023. In Vietnam, the business group is planning to complete the expansion of surfactant production facilities in 2021. It is also considering promoting an integrated chemical plant for three chemical affiliates in the future.
It is also considering new biodiesel-related businesses such as bio-oil for vessels and airplanes through investments in bio-tech businesses and research and development. A demonstration plant for raw materials of aramid fiber (a material for fire suits) is also in operation, and will go into full-scale operation in 2023 after building a commercialization plant when it is internally approved for commercialization.
In this manner, Aekyung Chemical will accelerate growth through integration by maximizing synergies among the three companies' businesses, expanding R&D investments, and discovering new growth engines through mergers and acquisitions (M&As). Through this process, it aims to post four trillion won in sales and 300 billion won in operating profit by 2030.