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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Aekyung Chemical has decided to halt operations at its Chinese subsidiary and proceed with its sale as part of efforts to improve competitiveness and financial efficiency.
In a regulatory filing on March 19, the company announced that Aekyung (Ningbo) Chemical Co., Ltd. will cease operations by August 31 before being sold. The buyer has not been disclosed.
The subsidiary generated KRW 137.7 billion in revenue last year on a standalone basis, accounting for approximately 8.38% of Aekyung Chemical’s total sales.
The company expects that while consolidated revenue will decline following the divestment, operating losses will also decrease, leading to an overall improvement in its financial structure.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
