Kang Seung-woo is the Business Desk editor at The Korea Times. Prior to this position, he covered politics, national affairs, finance and sports.
GS Caltex expands into east China
By Kang Seung-woo
By Kang Seung-woo
GS Caltex said Thursday that it has completed a polymer compound plant in China, as Korea’s second-largest oil refiner continues to expand its overseas business portfolio.
The plant, located in Suzhou, Jiangsu Province, has started commercial operations with an annual output of 37,000 tons, according to the company. Polymer compounds are used in cars and home appliances.
GS Caltex, the flagship unit of GS Group, founded GS Caltex (Suzhou) Plastics China in October last year.
With the setup of the plant, the refiner, headed by Chairman Hur Dong-soo, has entered East China following North China.
In June 2006, the firm founded GS Caltex (Langfang) Plastic China in Langfang, Hebei Province and built a plant with an annual production capacity of 40,000 tons. It has supplied polymer compounds to Chinese firms and neighboring countries such as Russia, Taiwan and Thailand.
GS expects its second Chinese polymer compound plant to supply the product for Chinese companies including Haier Electronics, Midea as well as local players such as Samsung Electronics, LG Electronics and Kia Motors.
In addition, it plans to expand its supply to other countries with expectation of more than 70 billion won in sales in 2012.
China currently sees growing demand for polymer compounds which is estimated at 1.2 million tons per year, and the demand has grown by an annual average of 15 percent, becoming one of the fastest-emerging markets in the world.
Through the operation of the two polymer compound plants, the Korean company can supply 7 percent of the total demand in the world’s second-largest economy.
Recognized as a player who has a wealth of knowhow in oil refinery and petrochemical industries, GS Caltex has flexed its muscles in building overseas plants for localized production.
The company, which established GS Caltex Czech in June, is scheduled to complete a polymer compound factory in the Czech Republic by September next year.
The unit will be the first venture among Korean players in the central European country.
“The completion of the second plant in Suzhou means the expansion of our business portfolio in China,” said an official of GS Caltex. “In addition, the factories in China and the Czech Republic will help GS Caltex evolve into a global company.”