Samyang's New Venture
Casco aims to record 40 bln won in sales in initial year of operation this year

CASCO, a joint venture in the casting business established by Samyang Heavy Machinery, LS Cable, and Doosan Engine, launched last year targets its sales this year would reach 40 billion won. Samyang Heavy holds 37.7 percent-stake in the new company, LS Cable 50 percent and Doosan Engine 12.3 percent. Its long-range target sees its annual sales reaching 100 billion won in 2012 and operating profit of 10 billion won by the target year.
The joint venture company has invested 19 billion won in the construction of a plant with a capacity of 16,000 tons in Jeonju, North Jeolla Province. The plant is to be completed by June this year, and is designed to turn out value-added cast-iron products. The company also has plans to build a 13,000 ton capacity plant in Dalian, China, targeting the Chinese market, where the machinery and shipbuilding industries are rapidly growing. The plant will become operational by 2008 and will produce and sell cast-iron products.
Executive Director Shin Hyeon-ik was named to take over as president and CEO of the new company. The new president joined Samyang Heavy Machinery in 1975 and has more than 30 years's of experience in the industry, widely known as an expert in the casting industry. He worked as head of the material business section of Samyang Heavy before his promotion.
The three companies reached an agreement to form a joint venture firm in April last year in the hope that the new joint venture company, capitalized at 14.8 billion won, will raise the relevant business competitiveness as well as overall domestic and international competitiveness of LS Cable and Samyang Heavy and ensure Doosan Engine a smooth supply of cast-iron products for industrial machinery such as ship engines and injection molding machines.
CASCO held its launching ceremony about 100 officials and guests in attendance including Samyang Corp. Chairman & CEO Yoon Kim, LS Cable Vice Chairman & CEO Koo Cha-yeol, Doosan Engine President & CEO Lee Nam-doo, and Samyang Heavy Machinery President & CEO Song Chang-ki. In a speech of encouragement, Samyang Heavy Machinery President Song called on labor and management to cooperate to establish a new cooperative corporate culture that is conducive to realizing synergies in the company's technology and quality, ultimately to make the company the best casting company in the world.
Samyang was founded by Kim Yeonsu in 1924 and currently is comprised of eight business units; engineering plastics, sugar, flour, cooking oil, Samyang's own pre-Mix, medicine, medical devices, anti-cancer compounds, assorted feed, industrial fibers, trade, and environmental engineering, with three overseas branches and offices. The corporation operates several subsidiaries and affiliates through several strategic alliances with Korean and foreign companies in a wide range of industries.
Immediate plans include restructuring its business focus on the four core areas in chemicals, food, pharmaceuticals, and newly emerging businesses as they strengthen their world-class competitiveness in these core areas.
The 2006 management policies include a growth strategy focusing on business diversification, advanced business structure, and globalization. They also involve securing competitive advantage through operational excellence, innovation, and R&D, customer relations. Samyang's value is based on trust, challenge innovation, and talent.
Samyang has total assets amounted to 973.8 billion won last year, capitalized at 51 billion won. Its sales amounted to 890.2 billion won and net earnings 53 billion won with a debt ratio of 40 percent. Its employees totaled 1,235 as of the end of 2004.
Major business areas and products include food, sugar, wheat flour, pre-mix, vegetable oil, high intensive sweetener, and cooking syrup. nw

Heads of joint venture partner firms including Chairman Kim Yoon of Samyang Corp. pose together at a ceremony to launch the new company.

Chairman Kim Yoon of Samyang Group.