Hanwha Chemical is accelerating the integration of its plastic materials businesses. Hanwha Chemical has announced on March 11 that it decided to spin off the compound division of its subsidiary Hanwha Advanced Materials and to merge with H Compound.
The merger was carried out in order to raise management efficiency and strengthen market competitiveness. Also, it is an extension of business restructuring to strengthen its core capabilities in the manufacturing sector, such as the disposal of its affiliates including the construction sector of Hanwha L&C and Dream Pharma, and the acquisition of Samsung General Chemicals.
Hanwha Advanced Materials and H Compound are 100 percent subsidiaries of Hanwha Chemical. Since Hanwha Advanced Materials does not have the compound production line, it sold its relevant business division this time. H Compound possesses a polyethylene-based compound production line with an annual production capacity of 40,000 tons. This is a strategy to raise competitiveness by focusing on the compound business abilities, which were decentralized.
Accordingly, the possibility is being raised that the compound division of Hanwha Polydreamer, a subsidiary of Hanwha Chemical, could also merge with H Compound in the future.
An official from Hanwha Chemical said, “We can now focus on the compound abilities that was dispersed in the group. We expect that the compound division will grow 17 percent compared to the previous year, with the target of 60 billion won [US$53.28 million] in sales and 3 billion won [US$2.66 million] in operating profits this year.”