Hyosung Group Chairman Cho Hyun-joon Accelerates Growth Strategy in ‘High-tech Materials, Chemicals’
Chairman Cho to spur growth strategy
Earnings expected to top KRW 1 trillion two years in a row, driven by strong sales of high-tech materials and chemicals in second half of this year
Items produced in Vietnam to be diversified into chemical area
August 21, 2017 10:40 KST
SEOUL--(Korea Newswire) August 21, 2017 -- Hyosung Group (KRX:004800) reported its second-quarter sales last month when Chairman Cho Hyun-joon was appointed as chief executive. Its revenue increased 0.8 percent from the same quarter of last year. As Cho has pursued a strategy to accelerate growth since taking office as CEO, its annual operating profit is expected to top KRW 1 trillion for the second straight year.
Hyosung is implementing a strategy to sustain an upswing of its business in the second half of this year by improving the profitability of its polypropylene and NF3 business, increasing its tire cord sales, raising the performance of Power & Industrial Systems PG and maximizing the management efficiency of Construction PU.
In chemical area, Hyosung plans to begin the commercial operation of its new PP production facility in the third quarter. The total PP production capacity will increase from 560,000 tons to 700,000 tons. The additional facility has the capacity of rolling out 140,000 tons a year. PP sales are predicted to increase in the third quarter.
Chairman Cho seeks to boost the improving performance of Hyosung Vietnam Co. by increasing its factory output of Spandex from 70,000 tons to 80,000 tons and at the same time extending its product line to chemical area.
For industrial materials, the third-quarter operating profit is forecast to jump 30.2 percent from the previous quarter, driven by rise in both the selling price of tire cord, which is a flagship product, and the capacity utilization ratio. In Power & Industrial Systems PG, the second-quarter operating profit fell 67 percent year-on-year due to sales carry-over of highly profitable products, but sales are expected to pick up again in the third quarter.
Hyosung recorded KRW 1.0163 trillion in operating profit last year. It was the first time in its 50-year history to earn more than KRW 1 trillion a year. Its operating profit rose to KRW 232.3 billion in the first quarter when Cho Hyun-joon took office as chairman of the group. It was an all-time high performance for a first quarter, and has brought the group closer to the goal of earning KRW 1 trillion for the second consecutive year.
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