LX International : Completes the Acquisition of Hankuk Glass Industries Inc. and Diversifies its Business to Include the Materials Industry

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LX International Completes the Acquisition of Hankuk Glass Industries Inc. and Diversifies its Business to Include the Materials Industry

• 01/03/2023
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-The company completed the full acquisition of all Hankuk Glass Industries shares on the 3^rd, thus securing management rights

-The company secured a stable revenue base in preparation to expand into various materials industries in the future

- Hankuk Glass Industries will be developed to become the best eco-friendly and comprehensive glass supplier in Korea

LX International as finally completed the acquisition of Hankuk Glass Industries, a glass manufacturing company in Korea well known by the brand name HanGlas. It has been roughly 10 months since the company signed the stock purchase contract in March last year.

LX International announced on the 3rd that the company had completed the full acquisition of Hankuk Glass Industries shares for 590.4 billion won and secured all management rights.

Through this acquisition, LX International has secured another stable profit base by welcoming a leading glass manufacturing company in Korea. LX International plans to accelerate its entry into various materials industries and diversify its business. Meanwhile, the company also plans to actively invest in sustainable growth and develop Hankuk Glass Industries into Korea's best comprehensive and eco-friendly glass business.

■ The acquisition of Hankuk Glass Industries secures another stable profit base that will bridgehead the entry into various materials industries

Hankuk Glass Industries is a glass manufacturing company mainly producing and selling glass plates and glazed glass that are mostly used for windows of buildings and houses. The company which was established in 1957 has the longest history among the glass manufacturing companies in Korea. With its manufacturing capabilities that have been accumulated over a long time, the company is now recognized for its outstanding technology in the Korean glass market and has secured a stable market position.

The company is pioneering the technology for eco-friendly and high-profit glazed glass. In particular, the company's double low-E glass products are known to be excellent and competitive in terms of energy saving, solar protection, and cost. The low-E glass that Hankuk Glass Industries first developed in Korea is coated with silver on one side to enhance insulation, and it is expected to grow rapidly due to its energy-saving property.

Glass is an essential material used in national key industries including construction, automobiles, and IT, and the industry is anticipated to grow with a stable increase in demand following the expansion of construction supplies and remodeling.

LX International has been seeking opportunities to secure more stable profit bases by accelerating its entry into various materials industries, and the glass industry was a sustainable and prospective new field for the company. Hankuk Glass Industries was a prospective choice for acquisition due to its technological competitiveness and stable cash-generation capabilities.

Hankuk Glass Industries achieved 310 billion won in sales and an operating profit of 36.5 billion won as of 2021, and the company is expected to see continued revenue growth in the future as the market expands.

■The company will continue investing in the sustainable growth ofHankuk Glass Industries and support it to become the best eco-friendly glass supplier in Korea

After the acquisition, LX International plans to focus on refining the corporate value of Hankuk Glass Industries.

As with other industries, managing the global supply chain is becoming increasingly important for the glass industry as well. LX International plans to improve its competitiveness by utilizing its capabilities in global sourcing to discover new business opportunities through the trade of raw glass materials such as silica sand and soda ash and stabilizing the supply chain of Hankuk Glass Industries.

The company also plans to improve its ESG competitiveness by investing in eco-friendly and efficient facilities such as BIPV (Building Integrated Photovoltaic) and smart glasses. Furthermore, the company plans to build the foundation for sustainable growth by expanding its business in glass-related areas.

LX International CEO 윤춘성said, "The acquisition of Hankuk Glass Industries is incredibly meaningful as we secured another stable profit base to support the profit and loss volatility of our existing resource businesses and established a bridgehead to enter various materials industries.

We will actively promote new businesses and invest in sustainable growth to develop Hankuk Glass Industries into the best comprehensive and eco-friendly glass supplier in Korea."

■The company set a long-term strategy to leap forward as a key leader in the prospective energy industry

Meanwhile, LX International is promoting the business in critical minerals for secondary batteries and the renewable power generation as its strategic foundation to leap forward as a promising leader in the future energy sector.

In terms of critical minerals for secondary batteries, the company is reviewing investing in several nickel mines in Indonesia. As nickel refining and precursor production is expected to increase in Korea due to the US Inflation Reduction Act (IRA), the company is seeking additional business opportunities in the relevant intermediate materials.

As for the new and renewable power generation, the company will expand its asset investments in the biomass power generation in Korea and hydroelectric power generation in Indonesia overseas to contribute to ESG and reinforce its stable source of revenue. Last October, the company completed the acquisition of Poseung Green Power, a company operating a biomass power plant in Korea, secured its management rights, and began propelling its entry into the eco-friendly power generation business.

The company is also actively pushing for business diversification and securing new revenue sources. It established a joint venture for the biodegradable polymer (PBAT) along with the development and operation of an eco-friendly logistics center in Busan. The company is also actively reviewing other mergers and acquisitions and equity investments. (End)

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