NEWS
Kumho Petrochemical will broaden a target of China’s petrochemicalmarket by reinforcing its local partnership.
On October 21 (local time in Shanghai, China), Kumho Petrochemical(Chairman & CEO Chan-koo Park) revealed that it held a third plantdedication ceremony of its joint venture Shanghai Kumho-Sunny Plastics Co.,Ltd. (hereinafter “Kumho-Sunny Plastics”) at Jinshan District in Shanghai. This third plant has been completed in six yearsfollowing two plants in Minhang District in Shanghai (established in 2001) and inGuangdong (in 2009).
Kumho-Sunny Plastics is the firstjoint venture company of Kumho Petrochemical, established inChina in 2000. Thecompany is specialized in compounding ABS resin. The compounding of ABS is aprocess of manufacturing tailored special ABS compound through the coloring andtechnical combination of acrylonitrilebutadiene styrene (ABS), a synthetic resin. The production capacity for Kumho-Sunnycompounding ABS resin reaches 90,000 tons, taking first place in China’sspecial automotive ABS market. The major customers of the joint venture includeautomobile manufacturers, such as GM, VW,Hyundai Motor, and Nissan Motor, as well as electronics suppliers such as Haier, Lenovo, and Konica Minolta.
Kumho-Sunny Plastics aims todevelop the plant in Jinshan District into a strategic base equipped withaccess to raw materials. To accomplish this plan, the company purchased a sitefor the Jinshan plant with an area of 63,000 square meters, which is threetimes larger than that of the Minhang plant after investing CNY 300 million andrelocated 27 production lines of the Minhang plant with the annual capacity of70,000 tons. Moreover, Kumho-Sunny Plastics will extend the annual productioncapacity of the Jinshan plant to 200,000 tons for the following 5 years, whichis three times higher than the current capacity. The company will reorganizethe existing Minhang plant to be a base with the role of head office andresearch and development. In addition, the Guangdong plant’s current annualcapacity of 20,000 tons is planned to be increased stage by stage depending onthe demand of the district.
Kumho-Sunny Plastics is a 50:50joint venture between Kumho Petrochemical and Shanghai Sunny New TechnologyDevelopment Co., Ltd. It began with the annual capacity of 3,700 tons,recording the sales of CNY 29 million in 2001. Thanks to its sales capacitybased on the world’s top-notch technical competence in compounding ABS resin,Kumho-Sunny Plastics increased the initial sales to CNY 1.42 billion in 2014.
Noteworthy celebrities attended the dedication ceremony,including chairman and CEO of Kumho Petrochemical, Chan-koo Park, president andCEO of Kumho Petrochemical, Seong-chae Kim, chairman of Shanghai Sunny New TechnologyDevelopment Co., Ltd., Minqi Xin, presidentof Shanghai Kumho?Sunny Plastics, Seung-hyun Baek, Jinshan District vice chairmanof the Standing Committee of the National People’s Congress, Jinrong Yin, deputydirector of the Science and Technology Commission of Jinshan District, Xiaolan Hu,president of Shanghai Chemical Industrial Park Jihan Branch Development Co,Ltd., Minghui Wang, and vice secretary-general of the China Synthetic Resin Supply andSale Association, Xiang He.
