Aekyung Group to merge three chemical units
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Aekyung Tower, the headquarters of Aekyung Group (Aekyung Group)
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South Korean cosmetics-to-health care conglomerate Aekyung Group said Thursday it has decided to merge its three chemical businesses into one entity tentatively named Aekyung Chemical.
The merger of Aekyung Petrochemical, AK ChemTech and the current Aekyung Chemical is subject to approval by the respective company’s board and shareholders and a review by authorities.
The new entity, expected to launch by November, would have 1.7 trillion won ($1.4 billion) in combined revenue this year. The firm aims to reach 4 trillion won in revenue and 300 billion won in operating profit by 2030, the group said in a press release.
Aekyung Group’s holding firm AK Holdings will control 62.23 percent of the new firm.
The to-be-launched Aekyung Chemical will seek to create synergy from the combination of three firms’ business portfolios.
Aekyung Petrochemical is the world’s No. 4 supplier of plasticizer, an additive that goes inside plastic products. Aekyung Petrochemical also produces anode materials for batteries.
By Kim Byung-wook (kbw@heraldcorp.com) (The Korea Herald)