On the celebratory eve of its 92 years of existence, Samyang Group a midsized conglomerate based in South Korea with principal focus in chemical and food has sworn to reach sales of 5 trillion won by the year 2020. Senior executives in the company have stressed on creating new growth dimensions and improve its materials, bio-medical and food ventures. Reportedly, the company is going to remodel number of its subsidiary units in order to create long-term sustainability.
Since the year Samyang Corporation was founded, the group been significantly successful, having performed exceptionally in the business world. But, since 2011, the conglomerate has been experiencing a continuous decline in sales. This was also the year when the company transformed itself into a holding in order to shield itself from the global economic slowdown. Over the past couple of years, the Sales of Group fell from 5.2 trillion won ($4.3 billion) in 2012 to more than 3 trillion won in 2015. To be more precise, revenues of Samyang Corporation a subunit of the conglcore dropped drastically in 2016, meanwhile sale of Samyang’ petrochemical business declined to 900 billion in the same year. According to online sources, the group was severely hit particularly from the dropping performance of Samnam Petrochemical. In the recent years, revenues from the conglomerate petrochemical business has dropped almost 50 percent due to the sharp drop in prices of petrochemical goods.
The business has been subject to supply and demand instability as well as increasing competition in the market majorly fuelled by extensive production of terephthalic acid (TPA) by Chinese companies. The company is now actively concentrating on creating internal stability than expansion. Incidentally, the group has been restructuring and cutting down its business. In 2013, the company merged Samyang EMS Co., which was the electronic materials and semiconductor unit with Samyang Corporation. Similarly, in the subsequent year, Samyang Well Food Co., a dairy products unit was also absorbed as well as Samyang Mill Max Co., a food business subsidiary. Recently, the company also merged its starch manufacturing unit Samyang Genex Corp., in a bid to concise the structure of the conglomerate. In the recently held ceremony, the chief management expressed their intension of focusing in quality rather than quantity. The company has set its goal of reaching the figure of 5 trillion won in terms of sales in next three years by offering more quality and adopting the latest styles of running a business.