By Nina Ying Sun, Plastics News Staff
Hong Kong -- Polymer additives maker Songwon Industrial Co. Ltd of Ulsan, South Korea, is restructuring its China business with an emphasis on its new base in Hong Kong.
The wholly owned entity in Hong Kong, Songwon China Ltd, will be the shareholder of all Songwon companies in China and also act as the parent company's investment arm to form entities and joint ventures in China.
Shanghai Songwon Brilliant Chemicals Co. Ltd (SSBC) in Shanghai, will transform from a manufacturing and sales joint venture into a fully owned manufacturing subsidiary under Songwon China Ltd. SSBC will continue to serve the market with liquid products.
Songwon, via SSBC, has developed a successful presence in China in recent years achieving a leading position in antioxidants for PVC, ABS and specialty stretch fibres, a 15 April company statement said.
Songwon Shanghai Trading Ltd, a newly created entity, will distribute Songwon non-liquid products in China and manage the export of all Songwon products from China.
The new structure will take effect in the second quarter.
Songwon said it is developing relationships with partners in China to gain better access to the market and potential manufacturing assets.
Jongho Park, chairman and president of Songwon Group, said the move gives the company a more direct presence in China. Songwon also has subsidiaries in Japan, India, Switzerland, the US and Bahrain.