GS Caltex Pursues
Creation of Values,
Accident-Free Worksites

GS Caltex Chairman Hur calls on his staff to advance the realization of its vision of becoming a total energy service leader

GS Caltex Chairman & CEO Hur Dong-soo urged his executives and staff members to create value and make worksites industrial-accident free in order to cope with adverse business factors and advance the realization of its vision of becoming "a total energy service leader."Hur said in his New Year's message, "A drop in profit margins of petrochemical products and fierce market competition are expected to make things worse this year. GS Caltex has set as this year's management goals the creation of outstanding value and making worksites accident free in order to address these adverse business conditions and advance the realization of our vision."Looking back at 2007, he said, "We inaugurated the No. 2 Heavy Oil Upgrade (HOU), the largest one since its establishment, earlier than scheduled, and the largest single aromatic plant, thus producing high-quality products and raising exports while greatly contributing to the development of the national economy and industry." "Besides,"he said, "GS Caltex pushed ahead with the No. 3 HOU project with an investment of 3 trillion won in order to create jobs and invigorate the regional economy. It made tangible achievements in exploring overseas crude reserves, new energy projects and its overseas presence."Hur said GS Caltex is building up a foundation for sustainable profit growth by strengthening its competitive edge through the establishment of a strategic network amid customers'positive responses at cultural meetings. "GS Caltex has a better competitive edge than ever as we are pushing performance-oriented innovation activities based on a productive labor-management relationship,"he noted.
GS Caltex marked an era in which it posted 22 trillion won in sales and 1 trillion won in operating profit for the first time since its establishment. "Sagging domestic demand caused net profit to drop below the target, but GS Caltex is expected to reap the industry's high of net profits this year if we work harder,"he said.
"This year's management goals are the guideline for executing major management activities in an efficient fashion. If each department works out specific strategies and translates them into action and checks their action plans to wisely cope with difficulties, we will be able to come closer toward the realization of our vision,"he said.
In an effort to achieve the 2008 management goals, Hur first urged his staff to be ready and flexible with environmental changes. "It is important to draw up a scenario on how to predict and respond to all possibilities with composure in advance in order to tide over any environmental situation that cannot be predicted even tomorrow. Even though the business environment is changing fast, we can achieve our targets if we are ready fully in advance and minimize risk factors."Secondly, he called for the pursuit of sustainable profit growth. "Sustainable management that pursues the co-prosperity of the economy, environment and society has become an essential element of corporate management. Accordingly, the protection of the environment and social responsibility should be pursued simultaneously in order to achieve the corporation's goal of making profits. When we abide by corporate ethics and conduct environment-friendly management and social contribution activities, we should take to heart the fact that we can achieve sustainable profit growth."Thirdly, he appealed to his staff to be armed with a sense of mastership and determination of execution. "We have a definite vision of becoming a total energy service leader with the highest profits in Asia. It is we ourselves who take the initiative in realizing this vision. We have to have a sense of mastership to advance the realization of the vision on our own with a sense of pride and responsibility. Even though we have a good strategy, we cannot achieve the vision unless we carry it out. I appeal to you to build up a corporate culture in which you set targets and translate them into action in a thorough manner with a challenging spirit."In the meantime, GS Caltex held a ceremony to launch 2008 at GS Tower with Chairman Hur and 500 executives and staff members participating.
As they did last year, a group of new employees gave a rousing performance of rap, a capella and rock under the theme "Let's go, Victory,"wishing for the company's brilliant growth. nw

GS Caltex Chairman & CEO Hur Dong-soo