Chairman Kim Seung-yeon returns to Hanwha Group to drive new businesses

As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses.

ANI | Seoul | Updated: 01-04-2021 08:56 IST | Created: 01-04-2021 08:56 IST

Seoul [Sout Korea], April 1 (ANI/Global Economic): As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses. Following trillions of investments in space and aviation, it will also promote its own production of Dinitrotoluene (DNT).

It was announced on Wednesday that Hanwha Solutions [009830] and Hanwha Co., Ltd. are planning to jointly invest a total of 350 billion won to build a nitric acid and nitric acid derivatives (DNT) production facility in Yeosu Industrial Complex. DNT, which is produced from nitric acid and toluene, is a key raw material for toluene diisocyanate (TDI), that is used to produce artificial leather etc.

Hanwha Solutions plans to invest 160 billion won and Hanwha Co., Ltd. 190 billion won to build nitric acid and nitrate derivatives (DNT) facilities. Hanwha Solutions has been purchasing TDI from Hu-Chems [069260] until now, and when this plant is completed, 100% of TDI can be produced in-house.

The two companies plan to build a TDI production facility with an annual capacity of 180,000 tons using the area of 66,000m^2, half of the 132,000m^2polysilicon site in the Yeosu Industrial Complex of Hanwha Solutions. It aims for commercial production in January 2024. An official at Hanwha Solutions explained, “With this in-house DNT production, we will build a vertical integration line for the production of caustic soda, chlorine, synthetic gas, DNT, and TDI.”

Hanwha Solutions predicts that if TDI is produced in-house, the operating margin will increase by about 10 % due to cost improvement. Through this project, Hanwha Corporation is expanding its nitric acid business by producing 400,000 tons of nitric acid.

Hanwha Corporation plans to advance into the inorganic chemistry and derivatives business by enhancing its nitric acid business competitiveness. Prior to this investment, Hanwha Group decided to make a paid-in capital increase worth 1.2 trillion won to Hanwha Systems [272210], a defense, space, and aviation company.

Hanwha System’s largest shareholders, Hanwha Aerospace [012450] and H Solutions, are participating in a total capital increase of 730 billion won. H Solution is a company that is 100% owned by three sons of Chairman Kim Seung-yeon, Kim Dong-gwan, Kim Dongwon, and Kim Dongseon.

Hanwha Systems is planning to invest 500 billion won in LEO (Low Earth Orbit) satellite communications, 450 billion won in air mobility business, and 250 billion won in blockchain-based digital platform business throughout 3 years starting this year. It is planning to expand the air mobility (air taxi) business in earnest. The business community believes that the power of Chairman Kim Seung-yeon, who returned to management after seven years, is attributable to Hanwha Group’s recent active business expansion. (ANI/Global Economic)

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