The material industry is working on the physical company division, mergers, and reorganization. This is to find new growth opportunities through discovering and nurturing future markets and businesses.
On the 1st, LG Chem reorganized into four new business divisions. It has reorganized its basic materials, batteries, information and electronic materials, life sciences business headquarters, and materials business into petrochemicals, batteries, high-tech materials, and life sciences business headquarters. The essence is the new high-tech materials business division. The company has combined the existing ‘information and electronic materials business’, ‘materials business’, and ‘EP (engineering plastics) business’ of the petrochemical business. Vice President Yoo Ji-Young, who used to be the head of the old information and electronic materials business, will be the Director of the new division. The sales amounted to about 4.7 trillion won last year.
The high-tech materials division has been composed of three business divisions including 'Automotive Materials', 'IT Materials' and 'Industrial Materials'. The automotive materials division is responsible for high-strength and lightweight materials. The IT materials division is responsible for preoccupying the display material market including liquid crystal display (LCD) and organic light emitting diode (OLED). The industrial materials division focuses on strengthening the competitiveness of the industrial materials business in the field of battery anode materials and eco-friendly energy. Hak-Cheol Shin, vice chairman of LG Chem, said, "Continuous innovation is required in the materials business due to the influence of the 4th industrial revolution. This is another opportunity for growth. We will actively foster the advanced materials business as our third growth axis in addition to the petrochemical and battery businesses."
POSCO Chemical, a merged company between POSCO ChemTech and POSCO ESM, and Toray Advanced Materials, a merged company of the old Toray Advcanced Materials and Toray Chemical, were also established on the day.
Jun Hae-Sang, the original CEO and President of Toray Advanced Materials Korea Inc. became the Chief Executive Officer (CEO) of the new company. The CEO change was the first time since the old company’s establishment in 1999. To strengthen the development of high-value materials and urea technology, and to expand the research capacity, the Chief Technology Officer (CTO) has been newly established to oversee the entire technology research division. Lim Hee-Seok, Vice President of the company, was promoted. The company plans to become a global company through business restructuring and capacity building.
POSCO Chemical merged with POSCO ESM to increase its size prominently in the battery cathode and anode materials markets. Min Kyung-Joon, the former CEO of POSCO Chemtech, became CEO of the merged company. Last year, POSCO Chairman Choi Jung-Woo announced his goal to make the company a global first-class company in the field of energy materials by establishing a 20% market share and a turnover of 17 trillion won by 2030.
On the 2nd, SK Innovation will divide its material business division. At the 12th general shareholders' meeting held in Jongno-gu, Seoul on March 21nd, the physical division agenda have been confirmed. The plan is to enhance the expertise and secure global competitiveness by making the material business, which is being fostered as a high-tech future business, as a subsidiary. Kim Joon, General President of SK Innovation, said, "We will contribute greatly to increase the corporate value by responding timely to the material market expansion through high-level technology and aggressive market penetration."
An industry observer said, "The transition of traditional petrochemical companies into high value-added materials business is natural. Especially, the battery market is growing fast, so the vertical integration will speed up the business capacity and the process of finding new opportunities."