LX Inter acquires Korea Glass, the second-largest glass manufacturer in Korea, "Expanding Material Business"

Korea Glass Industry Gunsan Plant View

[Asia Economy Reporter Choi Dae-yeol] LX International announced on the 30th that it has agreed to acquire the entire stake of Korea Glass Industrial held by Korea Glass Holdings for 592.5 billion KRW. Korea Glass Industrial is a glass manufacturing company known by the brand name ‘Hanglass’ and holds the second largest market share in South Korea. Established in 1957, it is the oldest company in the sector. Its main products are architectural flat glass and coated glass.

Earlier, the two companies signed a memorandum of understanding for the acquisition in December last year and conducted a three-month due diligence process. They plan to sign the stock purchase agreement on the 31st. Korea Glass Holdings is a special purpose company established by Glenwood PE, a domestic private equity firm.

LX International highly evaluated the technological capabilities and stable market position of the company. They viewed the high-end product line, double low-e glass, as competitive in terms of energy savings, solar shading performance, and cost. Furthermore, they expect this acquisition to accelerate their entry into the materials sector, which is being promoted as part of their new business initiatives.

The company explained, "Glass is an essential material in the national foundational industry, and the sector is highly attractive with expected stable demand growth," adding, "This is why we have designated the glass sector as a sustainable new area and decided to acquire Korea Glass Industrial, which possesses high technological competitiveness."

After the acquisition, they plan to enhance the corporate value of Korea Glass Industrial. They believe they can proactively respond to supply chain management by leveraging the global sourcing capabilities of the general trading company. They also plan to invest in eco-friendly high-efficiency facilities and smart factories, while keeping open the possibility of expanding into related glass fields.

Yoon Chun-sung, CEO of LX International, said, "This acquisition adds a stable profit base that complements the profit and loss volatility of our existing resource business and establishes a foothold for entering various material sectors such as eco-friendly and advanced industries," adding, "We will accelerate efforts to enhance business value and discover new growth engines."

This content was produced with the assistance of AI translation services.