As it seeks expansion and revenue growth in Asia, Honam Petrochemical Corp. has planned to buy out minority shareholders in subsidiary KP Chemical Corp. this year. KP Chemical, which is 52% owned by Honam, has production bases in Korea, UK and Pakistan This step will enable to company to grow from its position as South Korea’s second-biggest ethylene producer. “We need to beef up our petrochemicals business and become big enough to compete throughout Asia,” Chief Executive Officer Chong Bum Shick said yesterday. “We are open to acquisitions.”
Honam, which targets sales of 40 trillion won (US$37 bln) by 2018 from an estimated 14 trillion won this year, is diversifying its product range.
The company is investing in rising demand for low- carbon energy business as governments tighten regulations on emissions. Honam acquired Malaysia’s Titan Chemicals Corp. in 2010 for 1.5 trillion won and plans to partner USA’s ZBB Energy Corp. to move into the energy -storage business.