Asahi Chemical Industry Co., Ltd. and Hanil
Synthetic Fiber Co., Ltd. (Head Office: Masan, Korea; Chairman
of the Board: Jung Won Kim) today announced the signing of
a mutual agreement for the acquisition by Asahi Chemical of
all shares that have heretofore been held by its partner Hanil
Synthetic in their equally owned joint venture Tong Suh Petrochemical
Corp. Ltd. (Head Office: Ulsan, Korea; President: Sang-Hyun
Lee).
Tong Suh Petrochemical was originally established
in 1969, as an equally owned joint venture of Chungju Fertilizer
Corporation of Korea and Skelly Oil Company of the U.S.A.,
and began its operations in the production and sale of acrylonitrile.
In December 1975 it became an equally owned joint venture
of Hanil Synthetic and Asahi Chemical, as a result of the
transfer of its shares from Chungju Fertilizer to Hanil Synthetic
and from Skelly Oil to Asahi Chemical conducted over the period
of 1970 to 1975. The company has since then continued in the
development and growth of its operations in acrylonitrile,
sodium cyanide, and other petrochemicals.
The agreement has been negotiated and achieved
in the light of the mutual interests and goals of Hanil Synthetic
and Asahi Chemical. For Hanil Synthetic, the transfer of its
shares in Tong Suh Petrochemical to Asahi Chemical is in accord
with the Hanil Synthetic strategic initiative for the strengthening
of its business structure. For Asahi Chemical, the purchase
of these shares from Hanil Synthetic will contriubute to the
strengthening of its acrylonitrile business. The transference
of the shares is scheduled to become formally effective after
the necessary official approval has been granted.
Hanil Synthetic is one of Korea’s leading
manufacturers of acrylic fibers and will maintain its close
relationship with Tong Suh Petrochemical, which will continue
to supply Hanil Synthetic with acrylonitrile as the key production
material for its acrylic fiber operations.
Tong Suh Petrochemical will be positioned
by Asahi Chemical for advancement as a key major production
base, for strategic development and growth of acrylonitrile
operations as a core business of the Asahi Chemical group.
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