Samsung subsidiary Cheil Industries opens large plastics plant in China
Mary Page Bailey
Samsung Group’s (Suwol, South Korea; www.samsung.com) Cheil Industries Chemical Business Division has recently completed a high value-added engineering plastic (EP) production plant in Dongguan, Guangdong Province in Southern China and begun mass-production of plastics to be used in mobile phones and automobiles. With four production lines on a site covering approximately 22,000 m2 the Dongguan Samsung Engineering Plastics Co. (DSEP) plant has a production capacity of 27,000 metric tons per year (m.t./yr). The engineering plastics that Cheil Industries produces are high value-added synthetic resins used in not only automotive interiors and exteriors, but also mobile phones, mobile devices, TVs and other electronic products.
With this plant Cheil Industries has accomplished its goal of establishing a just-in-time supply system to better serve its customers in the region. The Dongguan facility in Southern China is part of a trio of plants that Cheil has built to serve the Chinese markets. Another plant (built in 2010) is located in Tianjin in Northern China (just east of Beijing) to cover the northern market while another is located in Yeosu, a seaport in Korea, which will cover the eastern Chinese market. By achieving logistics cost reduction through an improved supply system tailored for each region while also expanding production volume, Cheil Industries has strengthened its competencies for strategic marketing and production in the Chinese market.
After establishing itself as a marketing company in Shanghai, Cheil Industries first completed an EP plant with a production capacity of 24,000 m.t./yr in Tianjin in 2010, thus securing a production base to serve the Northern China market. In 2012, the #2 PC Plant in Yeosu was expanded to increase polycarbonate production capacity to 240,000 m.t./yr to achieve global standard cost competitiveness. And now, with the Dongguan plant, Cheil Industries can effectively cover all the major Chinese markets. Cheil Industries recorded KRW 2.8 trillion in operating profit (approx. $2.7 billion) from its chemical business out of gross revenues of KRW 4.41 trillion (approx. $4.26 billion) last year.