Chairman Han Joon-ho of Samchully Group swore on the occasion of the group’s 55th anniversary in 2010 that he would diversify the group’s businesses into new areas. Now, after five years, the group has been able to cut the ration of the urban gas supply operation to 70 percent of its total earnings from 90 percent. Now 800 billion won in earnings comes from the power generation sector and another 300 billion won from environmentally friendly energy consulting.
Han said there were times when he regretted increasing the target earnings to five trillion won in five years, “but we have been able to hit the target with hard work with every one in the group on the ball as the group celebrated its 60th anniversary on Oct. 1.”
The chairman also revealed that the group gave up its plan to build an international industrial complex in Pyeongtaek, Gyeonggi Province. He also unveiled a strategy to step up a plan to expand overseas operations.
He also said the group will add non-energy businesses such as hotels and eateries through mergers and acquisitions to boost annual earnings to around 10 trillion won in the next 10 years.
He said the group has already been operating a restaurant and has taken over a small hotel with 150 rooms in California, called the Courtyard Anaheim at Disneyland Resort. He said they have been looking to take over a hotel or a brand-name restaurant worth 500 billion won to 600 billion won. The group will save its cash holdings to be ready when a proper takeover target appears.
The aim is to take over a very good company in terms of its future earnings, Han added.
When the group fully expands into the livelihood cultural sector, it will have operations in the major areas, in addition to the power generation and the urban gas supply business. There could be criticism on the expansion into the power generation sector, but it will die down with rising demand for cleaner energy, such as new and recycled energy, rising in the future to curb the generation of CO2 from coal-burning power plants.
He said he will try to build a power plant without taking on debt, so the company can maintain a healthy financial structure.
At present, Samchully supplies gas to 13 cities in Gyeonggi Province, including Bucheon, Gwangmyung, Sihung, Suwon, Hwasung, Osan, Ansung and Yongin, plus five districts in Incheon. Altogether it has 16 percent of the urban gas market in the country, earning some 3 trillion won annually.
The group built an LNG power plant in Ansan, Geyonggi Province, but has not done anything to expand the sector. It suspended a plan to strengthen its overseas operation, opting for a project to strengthen new and recycled energy, plus energy consulting.
Samchully ES, an affiliate, grew seven times in the past several years from its energy-effective projects, with sales rising to 50 billion won in 2012 from 25 billion won in the preceding year. Its annual income expanded to 91 billion won in 2013 and is projected to rise to 180 billion won this year.
The group held a ceremony for its 60th anniversary in KINTEX in Gyeonggi Province on Oct. 1 with some 1,200 employees attending.
In his congratulatory speech at the ceremony, Chairman Han said the group’s mission is to make a warm, safe and happy world in the days to come, with the group giving back the respect it earned from its customers.
_삼천리 60주년.jpg)
