CHUNGCHEONGBUK-DO < invest Korea

South Korea’s Hyundai Cement Co. is seeking to build a photovoltaic (PV) power station on its existing cement factory site as part of efforts to improve profitability.

According to the investment bank industry on Thursday, the consortium of Hanil Cement and LK Investment Partners that took over Hyundai Cement last month is considering using some part of the company’s Danyang factory site in North Chungcheong Province to build a solar energy farm. It aims to improve profitability by replacing some aged facilities at the site with the green plant, according to sources.

Hyundai Cement’s Danyang factory site is three times larger than Yeouido, the major financial district in Seoul, and it boasts of abundant sunlight, which is crucial for the success of a solar power plant.

LK and Hanil are said to have decided to review the plan to build the solar power plant on the factory site when limestone output from the existing plant starts to show signs of depletion, a move that is expected to maximize profitability, said an unnamed market analyst.

Last month, the consortium of the two companies fully paid 622.1 billion won ($550 million) for a controlling stake of 84.56 percent in Hyundai Cement, becoming the new owner of Hyundai Cement. It was named as the preferred bidder after offering a higher-than-expected offer of amounting to about 600 billion won in February.



By Chung Seung-hwan

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (Aug. 25, 2017)