All Fired up for Future Growth

Samyang Corp. turns 85, calls for 2015 Vision

Samyang Corp. celebrated its 85th anniversary on Oct. 1 and declared its plan to draw up a new 2015 Vision, a mid-to-long-term management strategy for such critical areas as reform, management objectives and global management vision.
Chairman Kim Yoon said the group should firmly jettison practices and systems that are no longer relevant to the current business trends, and make the necessary changes under a solid reform plan. “We have got to be globally competitive in our operations with spirits fired up for reform and challenges ahead,” stressed the chairman.
Kim continued on to say that the group should fall back on its ability to grow stronger during the crises as it did in the past and use it to find new growth engines.
The group set up the 2010 Vision in 2004 on the occasion of its 80th anniversary and went into such new businesses as chemicals, foods, medicine and others, making them core growth areas. The group would only reach 4.1 trillion won in sales this year, not the 6 trillion won projected in the new vision, but its operations in such new areas as new sources, bio and green growth businesses have been touted as successful.
As part of the green growth-engine businesses, the group launched the water treatment and PET recycling businesses, along with the restaurant chain Seven Springs and a bakery Mix and Bake. The 12th Seven Springs and 6th Mixed and Bake store are located on the first basement floor of Time Square in Yeongdeungpo, Seoul. Seven Springs has 260 seats with the slogan of “We Love Green” to show that the restaurant caters to wellbeing foods. Mixed and Bake offers 80 bakeries and coffee. The group also jumped into the anti-cancer drug development business.
Samyang officials said the new 2015 Vision would be a base for the group to continue its growth through its 100th anniversary and every officer and staff member of the group will focus on searching for new growth engines for the group to sustain its continued growth and prosperity as envisaged in the new 2015 Vision.
In the meantime, Samyang Corp. has entered the bisphenol-A (BPA) business in a joint venture with Mitsubishi Corp. of Japan. Officials for Samyang and Mitsubishi Corp. signed a joint venture agreement at the Samyang Group Headquarters in Yeonji-dong, Jongno-gu on Sept. 15. The joint venture is worth about 200 billion won with Samyang owning 80 percent of the business and Mitsubishi holding a 20 percent stake. The BPA plant will be built in the Gunsan Free Economic Zone under the supervision of the Ministry of Knowledge Economy. The production capacity of the plant is estimated to reach 150,000 tons a year. An MOU with relevant local municipalities, North Jeolla Province and the City of Gunsan is also being prepared. Construction is set to begin in the first half of 2010. Production and release will follow in the first half of 2012.
BPA, which is recently experiencing a rapid increase in demand, is the key raw material for engineering plastic polycarbonate (PC). As of 2008, the global market for BPA stood at 4.3 million tons, with the Asian market accounting for about half or 2.1 million tons. The world market for BPA grows by over 6 percent annually, and notably, the Asian market’s rapid growth is more than 10 percent.
As part of its growth strategy in the chemical division, Samyang has prepared to expand its new businesses. This time, with the opportunities and required conditions met, it has entered the BPA business.
According to a Samyang official, “With the entry into the BPA business, the existing EP compound, PC and BPA can be internally outsourced, further boosting the competitiveness of Samyang. This venture can also secure a new foundation for growth.” He added, “Beginning in 2012, when production is in full swing, annual sales of over 200 billion won and an annual import replacement value of over 100 billion won are estimated. Samyang will also be able to enter another similar business.”
Samyang will spin off the BPA division within the year. In the future, Construction of PC and BPA facilities will be added within the site, the company said. nw

Photo above is a view of the 6th Mixed and Bake Bakery Store on the first basement floor of Time Square, a huge shopping mall in Yeongdungpo, Seoul, recently opened. Photo below is the 12th Seven Springs Restaurant opened recently on the first basement floor of Time Square.