Hyosung Chemical Transfers Onsan Tank Terminal Division to Holding Company Hyosung

Hyosung Chemical announced on the 28th that it has decided to transfer the Onsan Tank Terminal division to its holding company, Hyosung.

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The transfer price is 150 billion KRW, and the business being transferred includes liquid cargo, ethylene tanks, and pipeline leasing. Hyosung Chemical plans to use the entire proceeds from the sale to repay its borrowings.

After the sale of the Onsan Tank Terminal, Hyosung Chemical intends to focus on stabilizing management centered on the polypropylene (PP) business. Hyosung expects that this acquisition will improve its operating profit generation capacity, which declined following the logistics business split in July last year, and reduce its dependence on dividends from existing holding businesses and affiliates.

The Onsan Tank Terminal business has had an annual EBITDA (earnings before interest, taxes, depreciation, and amortization) of about 10 billion KRW over the past three years, and sales and operating profit are expected to increase from the second half of next year due to tank expansion and other factors.

The company stated, "The business is being transferred to improve financial structure and management efficiency," and added, "Borrowings will decrease and the debt ratio will improve through repayment of borrowings with the transfer proceeds and the generation of capital gains from the transfer."

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