08 December 2003 00:00 [Source: ACN]
KOLON Chemical has formed a strategic alliance with Georgia-Pacific Resins of Atlanta, Georgia, US, under which the two companies will market and sell each other’s products in their respective regional markets, a Kolon source told ACN.
The two companies would also share their manufacturing technologies and the fruits of their research and development, he said.
Kolon is South Korea’s main producer of hydrocarbon resins, with an 80% share of the domestic market. It has a 60 000 tonne/year facility in Ulsan, South Korea, and is building a 30 000 tonne/year plant in Yeochun at a cost of Won45bn (US$37.4m).
The company also produces phenolic resins, speciality chemicals such as polyurethane resins, plastic additives and pharmaceutical intermediates, and super absorbent polymers (SAP).
It has a 43 000 tonne/year phenolic resins plant in Kimchon, an 18 000 tonne/year speciality chemicals plant in Inchon, and a 41 000 tonne/year SAP plant in Kimchon.
An 18 000 tonne/year phenolic resins plant in Suzhou, China, that would cost Won10bn is under study, while a new 25 000 tonne/year SAP line costing Won25bn is expected to be ready in 2005.
The source said Kolon Chemical, a subsidiary of Kolon Industries, had total sales of Won261.8bn last year, when it posted an operating profit of Won25.9bn. Sales were up 12.4% over 2001, while operating profit was 18.2% higher than in the previous year. Its net profit of Won16.8bn compared with a net profit of Won13.6bn in 2001.
On Georgia-Pacific, he said it was a wholly owned subsidiary of Georgia-Pacific Corp. The company produces high-temperature performance phenolic resins and phenolic polyol, as well as paper and pine chemicals. It had total sales of over US$500m last year.
The company has 18 manufacturing facilities in the US, and plants in South Africa, Brazil, Chile and Argentina. Early last month, it acquired two resin plants in Brazil from Atofina.
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