[Asia Economy Reporter Hyunseok Yoo] Woosung Corporation, which recently acquired Sehwa IMC, a company specializing in tire mold and manufacturing machinery production, announced on the 21st that it will strengthen Sehwa IMC's sales capabilities.
Woosung Corporation secured its position as the largest shareholder by signing a stock purchase and management rights transfer agreement for 1.8 million shares (6.12%) of Sehwa IMC with Ally Company on the 24th of last month. Son Odong, the founder and actual owner of Woosung Corporation, is originally from Gwangju and currently serves as the management controller of Sehwa IMC.
Son Odong, the management controller, stated, “The acquisition of Sehwa IMC is not an investment aimed at short-term profits but a plan to continue systematic management with a long-term perspective and business plan. We will also resume communication with shareholders who lost trust due to prolonged management stagnation and trading suspension, while focusing on restoring Sehwa IMC’s past status as the world’s top company in the tire mold sector by solidifying its competitiveness as a ‘going concern.’”
Woosung Corporation, which acquired Sehwa IMC, is a small and strong company located in Yeosu, Jeollanam-do, established in September 2011, primarily engaged in the manufacturing and sales of WS-BC oil (low sulfur oil). The company, which counts major domestic petrochemical companies as its key clients, recorded sales of 44.7 billion KRW and an operating profit of 1 billion KRW as of 2018. The sales and profit growth rates over the past three years reached 60% and 34%, respectively.
During the acquisition process of Sehwa IMC, Woosung Corporation emphasized its significant advantage of strengthening business relationships between tire companies such as Kumho Tire and Hankook Tire and tire molding companies, based on its solid network with domestic petrochemical companies producing synthetic rubber.
Son Odong, management controller of Sehwa IMC, pointed out that since Sehwa IMC, which was granted an improvement period by the exchange due to trading suspension, faces the issue of being a ‘going concern’ as a major challenge, strengthening domestic and international sales capabilities is the top priority. The company plans to create priority synergies from the domestic and international business networks held by Woosung Corporation, which secured the largest shareholder status.
Woosung Corporation also plans to promote Sehwa IMC’s entry into the new Indonesian market based on its own network. Son Odong said, “Although there are seven tire companies in the Indonesian market, there are no mold companies. Based on the infrastructure Woosung Corporation possesses and Sehwa IMC’s technological capabilities, we consider it a market with great potential and plan to enter it as soon as possible.”
Woosung Corporation plans to review agenda items such as ▲partial amendment of the articles of incorporation for additional share acquisition ▲addition of new business objectives ▲appointment of new directors at the Sehwa IMC shareholders’ meeting scheduled for the 4th of next month, and then proceed with full-scale management improvement efforts.
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