Kumho Petro to Double Sales by 2012
By Lee Hyo-sik
Staff Reporter
Kumho Petrochemical, the country's leading maker of synthetic rubber and fiber, is seeking to double its revenue to four trillion won ($4.4 billion) in five years by expanding its existing businesses and venturing into new ones.
Company CEO Kee Ock told reporters Monday that revenue will reach 2.1 trillion won this year, up 20 percent from 2006, adding operating profits will increase 96 percent to 170 billion won. ``Despite record-high international crude oil prices and a strong won against the dollar, our revenue and profits will increase to an all-time high this year on high demand for our synthetic rubber and other chemical products from China and other emerging Asian economies.''
Kee expects his company to post larger earnings and profits next year and beyond, saying global demand for synthetic rubber will continue to grow at a fast pace on surging prices of natural rubber. He also said Chinese and other companies in emerging economies will need greater amounts of the synthetic materials to manufacture a range of industrial and consumer products.
Business Diversification
``By 2012, our revenue will exceed four trillion won as we will generate 1.6 trillion won in our synthetic rubber sector, followed by 1.1 trillion won in synthetic fiber, 400 billion won in precision chemicals, 300 billion won in electronic chemical materials, 200 billion won in electricity generation and the remaining 400 billion won in new businesses,'' the CEO said.
When Kumho Petrochemical completes expansion of its synthetic rubber producing facilities in Ulsan and Yeosu by the end of 2009, Kee said the company will increase its annual capacity by 230,000 tons to 823,000 tons, becoming the world's largest manufacturer of synthetic rubber. Currently, Goodyear is the global leader, producing 685,000 tons.
``We will also expand our electricity generation business and carry out natural resource development projects overseas. The company is seeking to invest in oil exploration projects and existing oil fields to secure a steady oil supply. We are also looking to acquire stakes in coal mines in Indonesia and Australia as coal prices will likely go up on rising demand,'' he said.