[Exclusive] Hanwha China, Head of Hanwha's China Business, Reorganized After 9 Years

Starting next month, Hanwha SolarOne, Hanwha Chemical, Hanwha Life, and other affiliates to independently manage and streamline overseas operations

[Asia Economy Beijing=Special Correspondent Sunmi Park, Reporter Soyeon Park] Hanwha Group's China business control tower, 'Hanwha China,' is reorganizing its structure in China after 9 years since its establishment. Until now, Hanwha Group's China business, led by Hanwha China, will be operated in the form of independent management by each affiliate such as Hanwha SolarOne, Hanwha Chemical, and Hanwha Life.

According to related industries on the 18th, Hanwha Group plans to reorganize the Hanwha China organization, which has been overseeing its China business, and transfer the Beijing and Shanghai office staff to each Hanwha Group affiliate within China.

Hanwha China has overseen manufacturing and trade, finance, and distribution and leisure sectors in China, serving as Hanwha Group's role within the country. The first CEO of Hanwha China was Vice Chairman Geum Chun-su in 2011. This coincided with the acquisition of a Chinese solar power company, which was renamed Hanwha SolarOne, marking the official start of the solar power business in China. In the solar power sector, a key business area for Hanwha Group, Vice Chairman Geum played a role as a facilitator of China business as Hanwha China’s president, highlighting the unique status and significance of Hanwha China within the group.

However, recently, due to the US-China trade conflict and the spread of the novel coronavirus disease (COVID-19), the business environment in China has deteriorated. Additionally, within the group, it is reported that there was a consensus that rather than maintaining Hanwha China as a general corporation, a guerrilla-style, swift response strategy tailored to each affiliate's market situation would be more efficient.

Hanwha Group currently operates 9 corporations and 10 branches in China. The manufacturing and trade sector plays a pivotal role as a global production base with Hanwha Q CELLS' solar power business, Hanwha Solutions' PVC production plant, and Hanwha Advanced Materials' automotive parts production plant. Trade corporations in Hong Kong and Shanghai, along with branches in Beijing, Guangzhou, Shantou, and Shenzhen, serve as external trade windows leading global Hanwha. In the finance sector, Hanwha Life is preparing to start insurance sales in China, and Hanwha Investment & Securities is accelerating its entry into PEF management. The service and leisure sector is expanding its business areas in China through new business development such as department stores, group catering, and dining businesses.

A Hanwha Group official said, "As difficulties in the China business intensified, the outbreak of COVID-19 made it inevitable to revise the strategy," adding, "The withdrawal of 'Hanwha China' can be seen as a measure to streamline overseas business."