Petrochemical Firms into Water Treatment

Korean Petrochemical Companies Are Rushing into the Water Treatment Market

Korean petrochemical companies are rushing into the water treatment market in neck-and-neck competition.

Last month, Huvis, which is a joint venture of Samyang and SK Chemical, acquired 86 percent of Hankook Jungsoo Industries shares at 118 billion won (US$109 million) to kick off the water treatment system business. The chemical fiber company is planning to buy the remaining shares as well. Hankook Jungsoo Industries, as the largest water treatment system provider in Korea, has led the development of power plant wastewater treatment technology. Huvis is aiming to combine the new business with its separation membrane business for a win-win effect.

LG Chem, in the meantime, bought NanoH2O for US$200 million in March this year. The American venture firm manufactures reverse osmosis (RO) water treatment filters, and was renamed LG NanoH2O before setting foot in the market. At present, 10 LG Chem employees are checking their sales networks and business plans at the main office in Los Angeles. Full-scale production is predicted to start next year.

Toray Chemical is leading the growth of the water treatment market at this moment. The company developed the first RO filter in Korea in 1994 and is currently manufacturing several types of water treatment filters ranging from micro filters and ultra filters to nano filters. It has a 70 percent share in the RO filter market. "We are running manufacturing facilities in the United States and doing our global business from there, because the U.S. is a very important place accounting for over 30 percent of the global market," Toray Chemical explained, adding, "We will continue to increase the ratio of the water treatment filter business to our total sales from the current value of 10 percent."

Source: Business Korea

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• Water Treatment & Control
• Finance and Markets