By Park Si-soo
GS Group Chairman Huh Chang-soo made a rare trip to China, Monday, heralding the company’s full-fledged entry into the world’s second largest market.
He visited a plant of CG Caltex (GSC), the group’s oil refining arm, and the GS Global Steel Service Center in Suzhou, Jiangsu Province.
“We should make full use of our technologies and experience to show our best performance in the Chinese market,” Huh said. “We need to have a deep understanding and knowledge about China that is quickly emerging as the central pillar of the world economy. There are a lot of business opportunities in China. We should try hard to take them.”
Officials said the chairman has underscored that the group’s future hinges on its performance in the neighboring country.
His visit came two weeks after GSC opened GS Caltex China, a control center for the refiner’s business activities in China.
GSC, Korea’s second largest oil refiner and the biggest affiliate of GS Group, launched its China business in 2003 and nearly 30 percent of its oil, petrochemical and lubricant products manufactured for export are shipped to Beijing.
The refiner is expected to earn 12 trillion won ($10.63 billion) in sales in China this year, including 1.2 trillion won from products manufactured at its Chinese factories.
“As we have done in the Korean market, it is crucial to localize our business in China,” Huh said. “First, we should build a flexible partnership among affiliates that have a presence here. This is crucial to catch up with the unique market and cultural trends of China and it will become a critical asset for GS to become a leading player.”
GS affiliates have already shown a good start in China.
GS Global is running 10 regional offices there through which it sells steel, petrochemical and other industrial products. The group’s home shopping affiliate GS Shop bought a 20 percent stake in China Home Shopping in April in a move to increase its sales in China.
GS Electric Power and Services is building a power station capable of generating 30 megawatts in Shandong Province.