Kurita Makes Equity Method Company Hansu Co., Ltd. a Consolidated Subsidiary
- Strengthening Businesses in South Korea, a Strategically Important Market in Asia -
Kurita Water Industries Ltd. (Head Office: Nakano-ku, Tokyo; President: Michiya Kadota; hereinafter "Kurita") is pleased to announce that it acquired approx. 50% of the issued shares of Hansu Co., Ltd., an equity method company in South Korea, on November 30. As a result of this acquisition, Kurita’s equity stake in Hansu Co., Ltd. increased to 85% and the company became Kurita’s consolidated subsidiary. Kurita will dispatch a representative director.
The Kurita Group aims to take a further leap forward as a corporate group achieving success in global competition by establishing a global business network spanning the four regions of Japan, Asia, Europe and North and South America. The acquisition of the shares of Hansu Co., Ltd. was carried out as a measure for strengthening businesses in South Korea, one of the strategically important markets in Asia.
Established in 1974 as a joint venture with Kurita, Hansu Co., Ltd. has been operating Water Treatment Chemicals business in South Korea for more than 40 years. The company has established locally based sales and service networks as well as a customer base and employs a large number of staff with expertise in water treatment in various manufacturing industries, including the electronics industry. Kurita has acquired shares of the company for the purpose of strengthening its management bases and facilitating the integration of business strategies with the company.
In the South Korean market, there are growing fields including the electronic industry, allowing expectations for the medium- and long-term expansion of domestic demand and further economic growth. Kurita will use this share acquisition as an opportunity to facilitate the integrated management of the Kurita Group, aiming to improve its cost competitiveness and strengthen its merchandising power. At the same time, Kurita will provide high-value added water treatment solutions by combining the distinctive technologies and services of the Kurita Group. Kurita will also bolster cooperation with Hansu Technical Service Ltd.(*1), which operates a Water Treatment Facilities business in South Korea, to create various synergies by taking advantage of the Group’s comprehensive capabilities. Kurita will thereby increase its customer intimacy further with the aim of achieving a continuous increase in business.
The Kurita Group positions South Korea as an important region that plays a part in its overseas expansion and further accelerates the growth of its businesses in the country.
*1 Hansu Technical Service Ltd. is a wholly owned subsidiary of Kurita that was established in 1999. This company engages in the manufacture, sale, and maintenance of water treatment facilities and the operation and maintenance of water treatment systems in South Korea.
Kurita’s equity stake before and after the share acquisition
|Equity stake before
|Equity stake that
|Equity stake after
Profile of Hansu Co., Ltd. (As of November 30, 2017)
|Company name||Hansu Co., Ltd.|
|Address||44, Sandan-ro, 35Beon-gil, Danwon-gu, Ansan-si, Gyeonggi-do 425-851, Korea|
|Business||Manufacture and sale of water treatment chemicals|
|Net sales||82,180 million won (Approx. 7.7 billion yen/ FY2016 result)|
|Paid-in capital||2,500 million won (Approx. 250 million yen)|
|Number of employees||Approx. 200|
- Impact on financial results：
- The impact of the share acquisition on the consolidated financial results
for FY2017 will be minor. However, the acquisition is expected to contribute
to improving the Kurita Group’s business performance over the medium and long terms.