The Hanwha inheritor appears to be discovering new drivers, tightening the grip
Hanwha Group has appointed the eldest son of its Chairman Kim Seung-youn to steer the funding division of the group’s eco-friendly power unit in a mid-year administration shake-up, a transfer additionally seen as a part of his efforts to permit the son to tighten up. his maintain on South Korea’s seventh largest conglomerate.
Hanwha Group mentioned on Thursday that it has reorganized management in seven models, together with core companies akin to Hanwha Ocean, Hanwha Aerospace and Hanwha Affect Co.
One other function was given to Kim Dong-kwan, vice chairman of Hanwha Group, in addition to chief govt officer of Hanwha Options Corp., Hanwha Aerospace Co. and Hanwha Corp., to direct Hanwha Affect’s funding enterprise.
Hanwha Affect is a inexperienced power firm beneath Korea’s No. 7 conglomerate. It has an funding division, which invests primarily in power conversion, digital information and life science applied sciences, and a enterprise unit, which produces purified terephthalic acid (PTA) and builds and operates solar energy crops.
TURN A BUSINESS
Kim shall be accountable for discovering new development engines for the corporate, which has been on a downward spiral as a result of a collapse within the native petrochemical trade pushed by the fast rise of Chinese language rivals.
PTA is a feedstock for polyester polyethylene terephthalate (PET) packaging, textiles, clothes, plastics, auto components, tires, toys and extra.
Hanwha Affect fell to a lack of 38.5 billion received ($29 million) in 2023 from an working revenue of 44.6 billion received in 2022.
Vice Chairman Kim is credited with turning round different Hanwha corporations primarily in eco-friendly power companies, akin to Hanwha Q Cells Co., Hanwha’s photo voltaic panel manufacturing unit.
Underneath Kim’s course, Hanwha Affect is predicted to make daring investments to nurture new inexperienced power companies akin to hydrogen and liquefied pure fuel (LNG). The corporate can be mentioned to be contemplating investments in bio-startups in the US.
The group additionally modified CEOs in different core companies – Hanwha Ocean Co., Hanwha Techniques Co., Hanwha Vitality Corp. Hanwha Aerospace, Hanwha Momentum Co., Hanwha Energy Techniques Co. and Hanwha Asset Administration.
Of those, Hanwha Aerospace CEO Son Jae-il may also head Hanwha Vitality.
The mid-year reorganization is meant to create larger synergy throughout totally different sectors, market analysts say.
Tighter GRIP
The reorganization can be anticipated to permit Hanwha Group’s inheritor obvious, Kim Dong-kwan, to tighten his grip on the group’s administration.
Hanwha Affect is Hanwha Vitality’s largest shareholder with a 52.07% stake, and Kim holds 50% of Hanwha Vitality, which additionally controls 9.7% of Hanwha, the Hanwha holding firm that’s on the coronary heart of the group’s possession.
If Hanwha Affect’s funding in future development drivers bears fruit beneath Kim’s management, Kim will be capable to increase his stake within the holding firm.
If the corporate’s monetary power improves, Hanwha Affect may additionally even reapply for its preliminary public providing, market analysts predicted.
Kim was promoted to vice chairman of Hanwha in 2022. His two youthful brothers additionally management 25% of Hanwha Vitality, every.
Write to Hoon Sung and Hyeon-woo Oh sang at uphoon@hankyung.com
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