- Deal seen to create synergistic effect with conventional businesses
Hyosung has taken over a mid-sized builder, Chinhung International, INC. On January 28, the company signed a contract to purchase 104,113,208 shares of Chinhung, or a 57.6 percent stake in the builder, for 93.1 billion won through a capital increase to become its majority stakeholder.
Hyosung has been exerting efforts to expand its business portfolio centered on the domestic market to secure new growth engines. Through the acquisition, the company aims to reinforce its existing construction operations, while expanding business centered on the domestic market. The company will also seek to develop the construction business as another growth engine in addition to its conventional main businesses, including heavy industry, textile, and tire cords. Development of a new growth engine in the construction business is expected to generate significant synergistic effects in association with existing operations.
Established in 1959, Chinhung International, INC. is a mid-sized builder. The builder (ranking 45th in construction capacity) is estimated to have attained 560 billion won in sales in 2007. Notably, the company is a specialized contractor with a competitive edge in road, bridge, and railroad construction, water supply and draining projects.
