CZECH REPUBLIC GS: Caltex sets up compounded resin plant at Karvina

It said the plant can produce 30,000 tons of compounded resin, a functional plastic widely used in manufacturing cars and electronics products, per year. The company added its annual supply of the product will reach 190,000 tons worldwide.

"The completion of the plant has allowed us to take a meaningful step in the compounded resin market in Europe as an international manufacturer,” said GS Caltex Vice Chairman and CEO Huh Jin-soo. He was among 150 dignitaries, including Karvina City Mayor Tomas Hanzel, who attended the ceremony on site to celebrate the establishment of the plant.

"We'll continue to enhance our competence in the global market by continuously making investments.”

This is the first time that a Korean enterprise is running a plant with a capacity to manufacture 30,000 tons of compounded resin, according to the firm.

It said it will sell its polymer compounds to the Korean companies operating in the region. They include the country's two biggest automakers ? Hyundai Motor and Kia Motors ? and the electronics giant Samsung Electronics, it added.

"We also plan to expand our sales to other global enterprises such as Mercedes-Benz, BMW, and Volkswagen in the near future,” GS Caltex said.

The firm said it will increase the amount of annual production at the Karvina plant to 50,000 tons by 2016. It also said the plant is anticipated to have annual sales of 1 billion won (USD 94.1 million) in 2017.

GS Caltex sold 6,000 tons of the compounded resin in Europe last year. The total size of the regional market in the same time period was 12,000 tons.

With the new plant, the firm said it anticipates increasing annual production of compounded resin to 240,000 tons by 2016 worldwide.

GS Caltex has been producing compounded resin domestically as well as overseas. Its domestic plants include the ones at the industrial complex in Yeosu, South Jeolla Province and Jinju, South Gyeongsang Province.

In Langfang, China, it operates a plant with an annual production capacity of 40,000 tons. The plant in Heibei Province has supplied polymer compounds to China and neighboring nations such as Russia, Taiwan and Thailand. It also has another Chinese unit in Suzhou, Jiangsu Province.

Source: Daily "The Korea Times", Seoul; 18 Oct 2013(Syed Rashid Ali, Karachi, Pakistan)