Dongwon Systems Absorbs Subsidiary Techpack Solution Through Merger

[Asia Economy Reporter Seungjin Lee] Dongwon Systems announced on the 13th that it has signed a contract to merge its subsidiary Techpack Solution.

Following the merger contract signing, a shareholders' meeting will be convened on September 1, and the merger plan will be finalized upon approval at the shareholders' meeting. After the merger, Techpack Solution will be dissolved, and Dongwon Systems will succeed all positions, maintaining the company name as Dongwon Systems. With this merger, CEO Beomwon Seo, who managed Techpack Solution, will move to Dongwon Systems and serve as co-CEO alongside the existing CEO Jeomgeun Jo.

The merger ratio is 1 to 4.44 for Dongwon Systems and Techpack Solution, respectively. After the merger, Dongwon Enterprises, the holding company, will hold 70.56% of Dongwon Systems' shares as the largest shareholder.

Dongwon Systems, an affiliate of the Dongwon Group, is Korea's leading comprehensive packaging company capable of producing packaging materials for consumer goods including aseptic filling beverages, retort foods, pet food packaging, flexible packaging, steel cans, paper, and industrial films for food, beverages, cosmetics, daily necessities, and electronic devices. Recently, it has also entered the secondary battery components business, transforming into an advanced materials company.

Techpack Solution, established in 1956, is Korea's largest glass bottle manufacturer and the first to enter the glass bottle manufacturing business domestically. Since then, it has grown into a company producing various food and beverage packaging containers including glass bottles, aluminum cans, and PET. In 2014, it was acquired by Dongwon Systems, Korea's largest comprehensive packaging company.

Dongwon Systems reported consolidated sales of 1.0785 trillion KRW and operating profit of 97.7 billion KRW last year, while Techpack Solution reported sales of 386.9 billion KRW and operating profit of 35.1 billion KRW last year.

A Dongwon Systems official stated, “This merger is being carried out to increase management efficiency and strengthen business competitiveness, thereby enhancing shareholder value and corporate value.”