LX International Completes Acquisition of Hanguk Yurigongup... "Diversifying Business in Materials Sector"

[Asia Economy Reporter Hyunseok Yoo] LX International has completed the acquisition of Korea Glass Industry, a domestic glass manufacturing company well known under the brand name ‘Hanglass.’ This comes about 10 months after signing the stock purchase agreement in March last year.

On the 3rd, LX International announced that it had acquired 100% of Korea Glass Industry’s shares for 590.4 billion KRW, securing management rights.

By bringing in a leading domestic glass manufacturing company, LX International has secured an additional stable profit base and plans to accelerate its entry into various material sectors. It will also actively invest for sustainable growth, aiming to develop Korea Glass Industry into the nation’s top eco-friendly comprehensive glass business.

Korea Glass Industry primarily produces and sells flat glass and coated glass used mainly for building and residential windows. Established in 1957, it has the longest history among domestic glass manufacturers. Based on its long-accumulated manufacturing capabilities, it is recognized for outstanding technological expertise in the domestic glass market and has secured a stable market position.

Glass is an essential material for key national industries such as construction, automotive, and IT. The industry is highly attractive due to expected stable demand growth driven by expanded construction supply and remodeling activities. LX International chose the glass sector as a sustainable new area to accelerate market entry into various material fields and secure an additional stable profit base. The acquisition target, Korea Glass Industry, was selected for its high technological competitiveness and stable cash-generating ability.

As of 2021, Korea Glass Industry recorded sales of 310 billion KRW and an operating profit of 36.5 billion KRW. Continuous profit growth is expected in line with market expansion.

LX International plans to focus its efforts on enhancing the corporate value of Korea Glass Industry after the acquisition. Like other industries, the importance of global supply chain management is increasing in the glass sector. LX International intends to leverage its strength in global sourcing to discover new business opportunities through trading of glass raw materials such as silica sand and soda ash, while contributing to stabilizing Korea Glass Industry’s supply chain and enhancing competitiveness.

Additionally, it will strengthen ESG competitiveness by investing in eco-friendly high-efficiency facilities such as building-integrated photovoltaic power generation and smart glass. Furthermore, it plans to expand its business into related glass areas to establish a foundation for sustainable growth.

Yoon Chunsung, President of LX International, said, “This acquisition of Korea Glass Industry is meaningful as it adds a stable profit base that complements the profit volatility of our existing resource business and establishes a foothold for entering various new material sectors. Along with investments for sustainable growth, we will actively promote new businesses to develop Korea Glass Industry into the nation’s top eco-friendly comprehensive glass supplier.”

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