South Korea's Songwon on course to deliver growth in 2013, says COO

05 June 2013 12:40  [Source: ICIS news]

FRANKFURT (ICIS)--South Korea-based plastics stabilizers producer Songwon is on course to deliver a strong 2013, following positive first-quarter results, chief operating officer (COO) Maurizio Butti said on Wednesday.

The company expects to deliver around South Korea won (W) 755bn ($670m) in revenue in 2013, compared with W680bn in 2012. It forecasts a net income of W26bn, up from W20bn reported last year.

Butti was speaking at a pre-K Conference event in Frankfurt.

Last month, Songwon saw its Q1 net profit jump to W7.72bn from W1.09bn in the same period the year before, which has given the company a solid platform to work from.

Steady recovery in the US and Chinese economies and moderate growth in emerging markets is expected to support the company’s growth in the second and third quarter.

Demand for polymer stabilizers in the US and also the Middle East is on the increase, driven by shale gas and lower raw material costs, which have stimulated growth in the polyolefin segment.

Butti also affirmed Songwon’s strategy to post at least a 10% annual growth rate in revenue until 2015. A growth of 10-12% over the next three years means the company is on track with its target of achieving W900bn revenue by 2015.

Sonwon also wants to strengthen its position as the second largest polymer stabilizers producer worldwide.

The company also wants to expand its operations into the Middle East, India, China and South America. He added that Songwon will continue to strengthen its one-pack systems position globally through its manufacturing facilities in Europe, the US and the Middle East.

($1 = W1,128)

Additional reporting by Pearl Bantillo

By: Franco Capaldo
+44 (0)20 8652 3214

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