Chairman Kim Seung-youn of Hanwha Group.

Hanwha Group’s key words for the new year are “selection and concentration” when it comes to tightening its internal management in 2016.

The group’s major focus will be on boosting its competitive power as much as possible this year so that it can rise to No.1 in the world in many areas of its operation. At the core of its operation are defense, chemical and two other business sectors.

With Hanwha Techwin and Hanwha Thalese starting the new year as part of the group, the defense industrial sector, which was a key part of the group’s operation for over 60 years, was boosted even more to be the largest in the country, with an annual turnover passing 2.7 trillion won. The group plans to make Hanwha Co., Hanwha Techwin and Hanwha Thalese — which make up the group’s defense industry sector — the largest in Korea, connecting defense and civilian businesses to make core elements of the group for its future growth.

The newest members of the Hanwha Group will expand not only the scale of the company's defense division, but its breadth as well, building on Hanwha Corporation's traditionally strong presence in munitions and precision guided weapons to include self-propelled howitzers and electronics such as engines and radar for aircraft and ships, creating the foundation's for the group's growth into a global defense company.

New growth engines for the group include close circuit TVs, chip mounters, energy equipment and engine parts, which all belong to the civilian sector. They will be nurtured to lead the group’s growth in the days ahead.

Joining the chemical sector are Hanwha Integrated Chemical and Hanwha Total to help bring the total annual sales of the sector to around 19 trillion won, which would be No. 1 in the domestic petrochemical sector.

Total annual output capacity of ethylene, a key raw material for petrochemical products, stands at 2.91 million tons, reaching economies of scale for its imports of naphtha to boost its competitive level.

The group will make its duty-free shop business a growth engine. It opened a duty-free shop at the 63 City Building in last December as a base for culture-related businesses, including tourism and shopping.

Hanwha Q-Cell is being looked upon as a dark horse among the group’s various affiliates, with the company emerging as the biggest producer of cells in the world through M&As. Hanwha Q-Cell will soon be ready to put online its plants for cells and modules built in Jincheon and Umseong, North Chungcheong Province. 

Last May, the company showed off its competitive edge in Europe by completing the Pan Land Farm Power Plant. It has an annual capacity to generate 20.4 Mw of power and a 24.8 Mw Greenland Power Plant in Cambridge, England.

In his New Year's address, Chairman Kim Seung-youn said: "We have pushed through an intense regimen of business reorganization despite the slowdown in growth of many of our core businesses. Looking several decades ahead, we have focused on strengthening our competitive capabilities through proactive measures. 

“We aim to boost our key capabilities to global standards by concentrating on what we do best. Defense and chemicals, areas in which we have now cemented our leadership, are businesses that both the preceding chairman and myself have held a passion and dedication for since the first days of our service to the company, and I hope that every member of the Hanwha family, bolstered by a clear sense of mission and purpose, will strive to take our company the best."

A view of the self-propelled howitzer produced by Hanwha Techwin among  many of its military hardware that it produces including engines and radars for aircraft and ships.(Photos:Hanwha Group)