Plans are underway to incorporate the SAP business of Kolon Industries’ Chemical Organization into LG Chemical, one of the biggest petrochemical companies in Korea and a producer of acrylic acid and its derivatives. “With this vertical integration, we will be able to enhance our supply stability greatly, and expect to expand our business in the near future,” commented Joon-Soo Han, CEO of Kolon Industries. “We believe these powerful synergy effects will offer a considerable benefit to our customers and assist them in becoming more competitive.”
Under the restructuring plan, which is expected to be completed in July, the SAP business’ production, quality control, quality assurance and R&D staff will remain unchanged. The incorporated SAP business with LG Chemical will begin August 1.