Ulsan, Korea - Polymer additives group Songwon reported positive third quarter (Q3) 2009 results after two previous quarters with good profits, although the Korean company noted that the market is, "yet to show signs of a full recovery and the overall economical situation remains uncertain."
Songwon Group's net profit for Q3 2009 was KRW 8900 million KRW ($7.7 million) on sales of KRW 110 740 million) and the company recorded a net profit of KRW 22400 million for the first 9 months of 2009, on sales of KRW 309 520 million.
One factor that helped this positive result was the local presence Songwon has set up in the Middle East, as part of its focus on extending its geographical coverage.
The group, which is focussed on antioxidants and stabilisers for polymers, but also has a polyurethanes business, noted that "service, cost competitiveness, product range extension and safety remain key priorities."
Noting that these results are an improvement compared with those of 2008, chairman Jongho Park said the results, achieved, "in the worst economical crisis of the last decade is a true indication of the strength of our business."
Park continued: "We are going to come out of the global economic crisis much stronger than when it started - which is an extraordinary achievement - and provides us with a good foundation to continue to grow in line with our strategic goals. However, we will remain vigilant in the light of the trends we see such as increasing raw material prices and a weakening US dollar."
Songwon's strategy will focus on cost reduction through process improvements, economies of scale and back-integration. The group said it will also aim for innovation and new products, as well as developing its geographical coverage and service level.
In polyurethanes, Songwon makes one-component materials for synthetic leather and one- and two-component PU adhesives, as well as a range of thermoplastic polyurethanes and polyester polyols.
PIC: Songwon opened a new warehouse in the Middle East, in Bahrain, last autumn.