Kumho Petrochemical

Kumho Petrochemical Co., Ltd. (abbr. KKPC; Korean: 금호석유화학 주식회사) is multinational chemical company based in South Korea, with headquarters in Seoul. It was founded in 1970 when Kumho Group struggled to secure raw materials for its bus and tire businesses. Kumho Petrochemical has a global market leadership in the manufacturing of synthetic rubbers with the world's largest production capacity based on SBR and BR by IISRP 2012. It focuses on synthetic rubbers, synthetic resins, specialty chemicals, electronic chemicals, energy, building materials and advanced materials as its core business.[1]

Kumho Petrochemical Co., Ltd.
Native name
금호석유화학
TypePublic
KRX: 011780
IndustryChemicals
Founded1970 (1970)
FounderPark In-chon
HeadquartersSeoul, South Korea
Area served
Worldwide
Key people
Park Chan-koo
(Chairman & CEO)
Kim Seong-Chae
(President & CEO)
ProductsSynthetic rubbers
Synthetic resins
Specialty chemicals
Revenue₩5,884 billion (2012)
₩224 billion (2012)
₩126 billion (2012)
Total assets₩4,062 billion (2012)
OwnerPark Chan-koo
Number of employees
1,358 (2012)
SubsidiariesKumho P&B Chemicals, Kumho Polychem, Kumho Mitsui Chemicals, Kumho Trading, Kumho T&L
Websitekkpc.com
Yeosu Synthetic Rubber Plant II
Ulsan Synthetic Rubber Plant
Ulsan Synthetic Resin Plant

In 2011, Kumho Petrochemical was ranked at 1806th of 'the Global 2000' by Forbes. In 2013, it became a component of the KOSPI 100 index, which tracks 100 major companies listed on the Korea Stock Exchange.[2]

It changed its name from 'Korea Kumho Petrochemical' to 'Kumho Petrochemical' effective February 15, 2012.[3]

It was spun off from Kumho Asiana Group in December 2015.[4]

Products
  • Synthetic Rubbers

Kumho Petrochemical's main business is synthetic rubbers. It has built up market leadership at general synthetic rubbers such as BR(Butadiene Rubber) and SBR(Styrene-butadiene Rubber) over 40 years. World's top-tier tire makers are its long-term customers. Recently, it also has developed and delivered eco-friendly and high energy-efficient synthetic rubbers such as S-SBR(Solution Styrene Butadiene Rubber) and Nd-BR(Neodymium Polybutadiene Rubber) which EU tire label requires.[5][6]

  • Specialty Chemicals

Kumho Petrochemical has the world's second largest production capacity of 6PPD, antioxidant products for industrial rubbers. It has created synergy effects through vertical integration of synthetic rubbers and specialty chemicals businesses.

  • Synthetic resins

Synthetic resins are another biggest businesses of Kumho Petrochemical based on sales revenue. It delivers general and high-performance plastic materials such as PS (polystyrene), ABS (acrylonitrile butadiene styrene), EPS (expandable polystyrene), SAN (styrene acrylonitrile), PPG (polypropylene glycol), etc.

  • Others

Electronic chemicals, combined heat and power plants, carbon-nano-tube materials are other growing business of Kumho Petrochemical. It produces raw electronic materials for use in semiconductors and display components, and operates combined heat and power plants to provide energy to its own affiliates. It is venturing into the future high-tech carbon-nano-tube materials business.

Management Issues

At the end of 2012, Kumho Petrochemical ended its restructuring program under creditors supervision successfully with the highest credit rating 'A-'(Stable) by Korea Investors Service.[7] It was the first success case since Kumho Asiana Group entered into a 'workout' program to pay down the debt at the end of 2009.

It resulted from its independent management from its parent 'Kumho Asiana Group,' based on the creditors' agreement which Park Chan-koo, fourth son of founder and chairman of Kumho Petrochemical, took responsibility for Kumho Petrochemical and its subsidiaries, and Park Sam-koo, third son and Kumho group chairman, for Kumho Tire since February 2010.[8] Kumho Petrochemical is struggling to separate the company and its affiliates from Kumho Asiana Group.[9]

Affiliates
  • Kumho P&B Chemicals provides BPA (bisphenol A), MIBK (methyl isobutyl ketone), epoxy resin, phenol, and acetone. In terms of production capacity, it is 5th BPA maker and 9th phenol maker in the world. (founded in 1976)
  • Kumho Polychem provides EPDM(ethylene propylene diene monomer) with 4th largest production capacity in the world. (founded in 1985)
  • Kumho Mitsui Chemicals provides MDI(methylene diphenyl diisocyanate). (founded in 1989)
  • Kumho Trading (founded in 2000)
  • Kumho T&L (founded in 2009)

References
  1. Annual Report 2012
  2. "KOSPI 100 Constituents". KRX.
  3. "Korea Kumho Petrochemical Co., Ltd. Announces Name Change". Reuters. 13 February 2012.
  4. "금호그룹, 금호석유화학 8개 계열사와 완전 분리…대법원 판결". 13 December 2015.
  5. "Why S-SBR matters to the tire industry". Tire Industry Research. 8 July 2013.
  6. "Kumho Petrochemical accelerates its drive in expanding synthetic rubber business". Maeil Business Newspaper. 15 October 2012. Archived from the original on 15 October 2012. Retrieved 1 August 2013.
  7. "Kumho Petrochemical receives highest credit rating". Maeil Business Newspaper. 30 May 2012. Archived from the original on 31 May 2012. Retrieved 5 August 2013.
  8. "Four Floors Apart". Forbes. 26 October 2011.
  9. "No end in sight for divorce at Kumho Group". Korea JoongAng Daily. 7 July 2011.
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