Edited from company website and “S Korea's Honam Petchem merges with Lotte Daesan”, ICIS news, 12 January 2009.
Honam Petrochemical will focus on its 2009-2014 vision plan entitled “exploring new horizons”. Its main aim is to become a “top tier chemical company in Asia” and to achieve sales of $10bn. Honam plans to do this by strengthening its existing businesses, extending its overseas business and developing new businesses.
The company further states that it is willing to take risks and challenge new ground in order to advance itself. “In the new century Honam is fully committed to advancing to a higher lever of development, by strengthening our foundation for future development”, says chief executive officer and president, Young-il Lee.
In January 2009, Honam completely absorbed its 100% subsidiary Lotte Daesan under the strategic direction that it can operate its businesses “more efficiently” under a single entity. Lotte Daesan currently operates a 1m tonnes/year cracker at Daesan, while Honam’s cracker at Yeocheon has a nameplate ethylene capacity of 750,000 tonnes/year.
A key development for Honam Petrochemical includes the planned $2.6bn (€2.1bn) joint venture cracker with Qatar Petroleum in Mesaieed, Qatar which is in its final stages of designing and is scheduled to come on stream in 2012-2013.
The ethylene cracker capacity will be 1m-1.3m tonnes/year and will also include a 700,000 tonnes/year polypropylene (PP) unit. In addition, there will be a benzene, toluene and mixed xylene line, however the capacity has not been stated.
The project is a 70:30 joint venture of Qatar and Honam Petrochemical.
Key strategies include:
Building a new growth base by:
(1) aggressive development of new vision businesses;
(2) entering global markets;
(3) searching for business items; and
(4) strengthening research capability.
Building result-focused business culture by:
(1) introducing a sales structure tailored to its products;
(2) introducing management indexes for value creation; and
(3) promoting performance management systems.
Building up strategic human resources by:
(1) defining HR function and role;
(2) re-establishing HR system;
(3) developing talent development strategies; and
(4) co-operative labour management relations.
Stable income generation by:
(1) raising profitability through strategic sales;
(2) maintaining stable operations; and
(3) cost reduction.
ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.
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Financial highlights: Honam, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales (Won m) |
30,982 |
22,553 |
21,813 |
21,128 |
19,521 |
|
Operating Profit (Won m) |
903 |
2,734 |
2,554 |
3,401 |
3,855 |
|
Net Profit (Won m) |
-453 |
4,643 |
3,816 |
5,114 |
5,353 |
|
Total Assets (Won m) |
35,510 |
35,874 |
29,976 |
27,915 |
23,183 |
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Honam Petrochemical
Company Structure
Honam Petrochemical is a producer of high density polyethylene (HDPE), polypropylene, mono ethylene glycol (MEG), ethylene, propylene, benzene, compound polypropylene, and other petrochemical products, providing plastics, synthetics and basic chemicals. It holds the largest shares in HDPE, polyethylene and MEG in the Korean market.
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