SK chemicals Site ManagerThe following news story was broadcast during KBS 9 O’clock News program on September 30 2004:
⊙ Anchor: Many textile companies have courageously attempted to switch to hi-tech businesses as they have encountered the crisis of a declining industry.
This story was reported by Lee Jaeho.
⊙ Reporter: Cheil Industries Inc., famous for its men’s suits, declared that it has resolutely transformed into an electronic parts materials producer in alliance with Dupong, a world reputed business.
It is going to take up the advanced technology business of producing the circuit board material film used in mobile phones, digital cameras and notebook computers.
The company recorded 1.2 trillion won in sales during the first half of this year. Its fashion and fabrics line took only 42% while the electronic part materials and other chemical lines took 58%. Therefore, its main business line has changed.
⊙ Dong Hyunsu (Executive Director, Cheil Industries Inc.): As our growth was limited only to the textile business, we now focus on the development of electronic part materials, in which Korea has competitive advantages.
⊙ Reporter: SK chemicals also started out as a textile company. However, its textile line represents only 10% of its gross sales.
Its chemicals line, producing functional plastic resins, represents over 70% of its estimated sales of one trillion won this year. Its pharmaceuticals line also represents 15%.
It is no longer a textile company.
The chemicals and food lines of Samyangsa represent over 50% of its annual sales. While Kolon’s non-textile lines of auto parts, film and organic EL materials represent over two thirds of its total sales.
⊙ Ahn Taehwan (Executive Director, Kolon): We are always trying to grow even further as a high-value hi-tech materials business based on the technology we have accumulated in the fine chemistry and electronics fields.
⊙ Reporter: Textile companies which had lost their market to inexpensive products from China and Southeast Asia now dream of a second leap forward by discovering their growth engine in the advanced hi-tech industries.
This has been Lee Jaeho, KBS News.