Exion Group will complete its business structure reorganization within the year. It plans to expand eco-friendly businesses with high future growth potential while considering restructuring or divestment options only for non-core businesses with low profitability.
On the 11th, Exion Group announced that it will reorganize its business structure focusing on eco-friendly businesses. Along with this, it plans to actively downsize divisions with low profitability, such as e-commerce. This business structure reorganization is a strategic move to respond to ▲fixed cost reduction ▲securing sustainable growth engines ▲intensifying competition in the e-commerce market.
An Exion Group official stated, “The newly appointed management team judged through a review of existing businesses that it is necessary to change currently underperforming businesses,” adding, “We will wind down businesses that have no future prospects by the end of the year.”
The company intends to trim excess through the divestment of non-core businesses while expanding profit momentum by strengthening the polymer business, which has been designated as a cash cow.
First, the polymer business division will sequentially develop a solid lineup tailored to various demands, including not only trays for secondary battery transportation but also eco-friendly containers and medical material products.
Exion Group has established detailed plans to complete additional production facility construction soon and to actively increase sales starting in 2025. The core of this plan is to enhance technological competitiveness through joint development with major corporate clients.
The company also expressed its intention to secure funds for strengthening new businesses. Exion Group is focusing on securing liquidity by recovering loans amounting to 20 billion KRW previously extended by the former management to affiliated companies and by selling company assets such as owned real estate and investments. This strategy aims to aggressively expand the business portfolio while maintaining liquidity as a backbone.
Regarding concerns raised about delays in new business initiatives, the company drew a clear line. It explained that while some schedules were postponed during the process of resolving various risks, the new business initiatives are progressing without any setbacks.
An Exion Group official said, “We are at a stage of securing a profit structure for sustainable growth,” adding, “We will focus on diversifying eco-friendly based businesses to expand our pipeline.”
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