Samsung subsidiary opens China resin plant

By Nina Ying Sun
Assistant Managing Editor

Published: June 10, 2014 2:20 pm ET
Updated: June 10, 2014 2:25 pm ET

Related to this story

Topics Materials, Materials Suppliers, China, Asia

Cheil Industries, a producer of ABS and polycarbonate resins under Seoul-based Samsung Group, has opened a new facility in Dongguan, Guangdong province.

Dongguan Samsung Engineering Plastics Co. Ltd., with a brand new 22,000-square-meter plant, currently runs four production lines that add up to total annual capacity of 27,000 tons of engineering plastics, the company said in a news release. It will supply to downstream industries such as information technology, automotive and appliances.

Cheil defines its engineering plastics portfolio as polycarbonate, polycarbonate alloys, and “super engineering plastics” on its website. However, the Dongguan unit described itself as a manufacturer of ABS and PC resins in job ads it has posted. Cheil did not immediately reply to Plastics News’ email request for clarification on the specific products in Dongguan.

The new production base in South China is part of a trio of plants that Cheil has built to serve the Chinese market, the company said. The other two plants are located in Tianjin in North China (24,000 tons) and in Yeosu, a seaport in South Korea that supplies to East China (240,000 tons).

“We have improved our competency to supply the Chinese market by securing a production base in Southern China, the largest market in China,” said Cheil Industries CEO Nam Seong Cho.

The company said it now aims to “attack Chinese market in full scale” with the “just-in-time supply system by region.”

The local government said in an online statement that the plant was officially opened on May 29. As the first phase of a biggest project, it is estimated to generate 780 million yuan ($124.8 million) in annual sales.

The government noted that the project has set a new record for a foreign-invested greenfield factory construction in Dongguan. It took 8 months from the signing of the project to the start of the trial production.

Cheil Industries recorded 2.8 trillion South Korean won ($2.7 billion) in operating profit from its chemical business out of gross sales of 4.41 trillion won ($4.26 billion) last year.

The company said it saw the demand for basic materials suddenly drop in the four quarter, but it managed to turn around in the first quarter through cost reduction and expanding sales of value-added products.

Sales in the Chinese market account for about 30 percent of the company’s gross sales.


Comments

Samsung subsidiary opens China resin plant

By Nina Ying Sun
Assistant Managing Editor

Published: June 10, 2014 2:20 pm ET
Updated: June 10, 2014 2:25 pm ET

Post Your Comments


Back to story


More stories

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Image

Dow sees solid second quarter performance

July 29, 2014 11:19 am ET

Dow Chemical Co. has reported its second quarter figures, with its seventh consecutive quarter of growth, according to the company.More

Image

Evonik sells polyimide foams operation to Boyd

July 29, 2014 10:46 am ET

Modesto, Calif.-based Boyd Corp., a manufacturers of specialty material and sealing agents, has purchased Evonik Industries’ Solimid...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events