Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Honam to Buy Out Unit KP Chemical in Bid for Asia Expansion

Don't Miss Out —
Follow us on:

April 17 (Bloomberg) -- Honam Petrochemical Corp., South Korea’s second-biggest ethylene producer, plans to buy out minority shareholders in subsidiary KP Chemical Corp. this year as it seeks expansion and revenue growth in Asia.

“We need to beef up our petrochemicals business and become big enough to compete throughout Asia,” Chief Executive Officer Chong Bum Shick said yesterday. “We are open to acquisitions.”

Honam, which targets sales of 40 trillion won ($37 billion) by 2018 from an estimated 14 trillion won this year, is diversifying its products, betting on rising demand for low-carbon energy business as governments tighten regulations on emissions.

Seoul-based Honam acquired Malaysia’s Titan Chemicals Corp. in 2010 for 1.5 trillion won and said last week it will partner ZBB Energy Corp. of the U.S. to move into the energy -storage business. KP Chemical, which is 52 percent owned by Honam, has production bases in Korea, the U.K. and Pakistan.

Shares of Honam almost tripled in Seoul trading in the past year, the sixth-best performance on South Korea’s benchmark Kospi 200 stock index. The shares gained 0.9 percent to 382,000 won on Friday, compared with a 0.03 percent decline by the Kospi.

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net.

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.