Vice Chairman Huh Jin-soo of GS Caltex.

GS Caltex has been at work in recent years to secure a stable earnings structure in its operations, with low prices and global economic downturn expected to hang around longer than expected, generating concerns for deflation. The company is taking preemptive moves to cope with the situation. 

The oil refiner has been trying to cut costs in every sector of its operation from oil refining, petrochemicals and lubrication, in order to plow more investments in those areas if needed.

The oil company has also been working on supplementing core operation sectors, technologies, raw materials and customers, which are most susceptible to changes in environment.

GS Caltex felt that its value chain needed strengthening all around from crude oil, oil products, production and marketing with the entire company focused on becoming more competitive.

The oil refiner kicked off its campaign with the “V Project” in 2013, which focused on turning its oil refining facilities into a high gear of operation. Some 40 areas were chosen for reform.

Last year, work to upgrade the company’s operation extended to maximizing the values of commodities and improving the refinery’s management. As a result of the moves to improve all areas of its operation, the oil refinery was able to turn the corner and improve its earnings. The company will not stop there. GS Caltex said it will find more areas for improvement in the days and months to come.

The oil refiner has not making efforts to find new growth engines and diversify its operation into such areas as bio chemical and multi materials.

In the area of bio chemicals, the refiner has been considering to take up such areas as bio mass from securing raw materials, production technologies, and the development of the areas of consumption, in particular their commercialization, and turning them into businesses. Bio mass includes the extraction of energy from plants, and animals. The company also plans to build an experimental bio buthanol plant in Yeosu, South Jeolla Province, at an investment of 50 billion won in cooperation with the South Jeolla Province Creative Economy Reform Center.

GS Caltex also plans to expand its multi-materials sector to develop technologies for the commercialization of raw materials, especially the expansion of the market, by developing various new products. 

For the expansion of overseas business, the company set up a wholly-owned subsidiary in Mexico as a bridgehead for the north American market.

Chairman Hur Dong-soo of GS Caltex resigned his post and his position as a registered director. Vice Chairman Huh Jin-soo, one of his cousins, took over as chairman of the board of directors, the oil refinery announced on Feb. 25.

Chairman Hur served with the oil refinery for over 40 years including the last three years as chairman of the board, and will continue remain as a registered director of GS Corp. to oversee long-term management strategies of the group, the group said.

Chairman Hur was born in 1943 and graduated from Yonsei University. He earned his Ph.D in chemical engineering at the University of Wisconsin in the U.S. and entered the Honam Oil Refinery in 1973, which later changed its name to GS Caltex.

He was promoted to Chairman of the oil refinery in 1994, holding various key positions at the oil refinery for 20 years before taking over the top managerial position.

Vice Chairman Huh, a younger brother of Chairman Huh Chang-soo of GS Group, will run the oil refinery single-handedly as the CEO from now on and also as a registered director. He joined the oil refinery in 1986 after earning a master’s degree in International Management from George Washington University in Washington D.C., the U.S.

A view of GS Caltex oil refinery complex in Yeosu, South Jeolla Province.(Photos:GS Caltex)