Songwon Group announces a positive performance for Q3 2010

Songwon Group, a leading global supplier of additives and other chemicals to the plastic industry, announces sales revenues close to 140 Billion KRW and a net profit of KRW 7.23 Billion for the third Quarter of 2010. Compared to the second Quarter of 2010, sales were slightly up, with a positive price development (+3%) and favorable currency (2%), partly offset by unfavorable mix (-4.5%). The Net Profit was also up by 3%, in spite of a continuous and significant increase of raw material costs, which were only partially offset by the positive price development.

Jongho Park, Chairman and CEO of Songwon Industrial Co., Ltd., stated: "We have reported once again a solid result for Songwon despite the fact we again had to partially absorb another significant increase of raw material costs: the positive price development was far from compensating this increase in costs. In addition shortage of some key raw materials is of some concern, but we believe that we are well covered with our back-integration and our strong suppliers' base.” Mr. Park continued: "On the positive side we continue to see a strong demand which we anticipate will continue in 2011, in spite of a still unstable global economic situation which is also driving a significant volatility on the currency side.”

"We are now accelerating the implementation of our strategic plan: the definitive agreement for acquisition of a share with Tangshan Baifu Chemical Co. Ltd., a major Chinese supplier of thioesters; the signature of the MoU to acquire a major share of the Polymer Stabilizers business of HPL Additives Ltd. (India); the expansion of our antioxidants capacity at our Maeam facility with an additional 15.000 tons by August 2011, bringing the total to 70.000 tons. We continue to focus on innovation with the introduction of new additive solutions and on quality, service and regulatory affairs: in particular our Reach registrations are fully on track.”