Hanwha Group Chairman Kim Seung-yeon joins other dignitaries in celebrating the dedication of Hanwha in Hoa Lac Hi Tech Park Aero Engines’ plant in Vietnam on Dec. 6. (Photo: Hanwha Group)

Hanwha Group Chairman Kim Seung-youn said, “We have to take the decade (ahead) as a crutch time on which Hanwha’s success as a ‘long–lasting’ company or failure hinge.”

He made the remarks while delivering his New Year message. “The decade ahead will be a period of revolutionary change, more so than any time in the past,” he said. Chairman Kim called for each business to expand its global projects with a competitive edge.

He recalled that he presided over a global strategic meeting in Thailand in 2007 in which he strongly asked to explore overseas markets. Hanwha has since made achievements to become a global company, but it fell short of expectations, he said. He urged his executives and staff to strengthen global business capabilities by learning a lesson from the past’s failures and ramping up overseas projects’ competitiveness through thorough prior analyses and preparations.

Kim said he toured Vietnam, in which Hanwha Aerospace’s plant was launched.

As Hanwha has been expanding groupwide capabilities such as Hanwha Techwin and energy projects following those of Hanwha Life, he expressed hope Hanwha will make it a success story on a global scale.

Chairman Kim stressed the securing of prominent manpower that will serve as new growth engines. He expressed willingness to strengthen compliance management to global standards levels.

Hanwha’s Two-Track Focus on Photovoltaic Power and Defense Business

Hanwha Group underperformed in photovoltaic power, chemicals and financing businesses last year. In particular, declining solar cell and module prices dealt a blow since the U.S. administration lifted tariff barriers and a reduction in China’s subsidies had damped demand in the solar market on top of a supply glut in China. Despite outside and inside uncertainties, Hanwha Group plans to make aggressive investments in the photovoltaic power and defense businesses to shore up its global no. 1 position.

Last August, the group announced a mid- and long-term plan to invest 22 trillion won in core businesses and future growth foundation by 2022. The figure represents a more aggressive investment with a 37 percent surge over the annual investment average of 3.2 trillion won.

The plan is designed to cope with the 4th Industrial Revolution and the global economy with greater uncertainties, a group official said at that time. Hanwha will focus investments on businesses with an ample competitive edge to ramp up its presence and secure growth engines, he added.

Out of 22 trillion won, 9 trillion won will be channeled to build and expand photo voltaic power equipment plants. The move may be construed as the group’s scheme to strengthen its global no. 1 position through technology and quality recognition amid excessive competition among photovoltaic power companies.

Hanwha ranks 1st in the world with Hanwha Advanced Materials plants in Jincheon, Eumseong, Chungcheongbuk-do, Qidong, China, and Cyberjaya, Malaysia, each with 8.0GW solar cell and module production capacity. 8.0GW is an equivalent to electricity 12 million people can consume annually.

The Jincheon plant is outfitted with a smart factory system based on big data and automation, leading to unit price competitiveness.

Hanwha will invest 4 trillion won to explore overseas markets and ramp up its global competitive edge in aircraft parts and defense industry businesses.