MOSCOW (MRC) -- South Korea-based Hanwha Chemical has merged two of its chemical compounds businesses, Hanwha Next and Hanwha Compound, reported Plastemart.
The combined entity, named Hanwha Compound, will produce polyethylene, polypropylene, polyvinyl chloride, and acrylonitrile butadiene styrene.
The company will operate manufacturing plants in Yeosu and Suncheon, with an annual capacity of 100,000 tons.
The company expects the merger to improve management efficiency across its petrochemical affiliates and related businesses.
As MRC wrote before, in March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals. The regulatory authority identified that the combined entity could dominate the domestic ethylene vinyl acetate (EVA) market, which could result in higher prices. However, markets of the other three chemical products including low-density polyethylene, linear low-density polyethylene and high-density polyethylene will not be significantly affected by the transaction, KFTC said.
Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
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