Hanwha acquires Samsungs plastics and chemical assets, becomes Korea's largest petrochemical firm

02-Dec-14

Hanwha Group is buying plastics and chemicals assets from Samsung Group and becoming the country’s largest petrochemicals maker- 57.6% stake will be acquired in Samsung General Chemical. As per PlasticsNews, Hanwha said it was buying a majority stake in Samsung General Chemicals and acquiring Samsung’s share of the Samsung Total Petrochemicals joint venture with French chemicals firm Total SA. The deal will boost Hanwha’s overall petrochemical sales to 18 trillion Korean won (US$15.8 billion), the company said. “The product line will also be diversified from the existing products, ethylene derivatives, to polypropylene, para-xylene, and styrene monomer,” Hanwha said. “This allows the group to minimize risks caused by deteriorating competitiveness and profitability of some existing key products. As a result, a foundation has been established for stable revenue growth.” The purchase also includes Samsung sizable arms-related businesses, and will make Hanwha into Korea’s largest defense contractor and weapons maker, expanding the company from ammunition and precision-guided weapons into defense-related electronics.