Huchems acquires Ylem Technology ... Secure high value-added synthetic…

Huchems, a fine chemical company, acquires Ileem Technologies.

According to Huchems on August 8, 2012, Ileem Technology is the third and the only producer of polybutene-1 in the world. Huchems plans to acquire 95% of the shares of ILRE Technology for about 29.9 billion won with a related consortium.

Ilem Technology is a venture company with patent related to polybutene-1, and it has a polybutene-1 facility with an annual production capacity of 10,000 tons in Jeollanam-do Yeosu Industrial Complex. The company recorded sales of 21.2 billion won and operating profit of 2.2 billion won last year.

Ilem Technology has signed a long-term supply agreement with Aegang Limetek, the largest pipe material manufacturer in Korea, for the supply of polybutene-1.

'Polybutene-1' is a product mainly used for piping for water supply and hot water supply. It is an eco-friendly material that is rapidly replacing piping for heating pipes because it has excellent thermal and physical properties and can be recycled and is convenient to construct. Ileem Technology has been supplying mainly to the domestic market, but it is gradually expanding its market by entering into the Chinese market recently.

"Ylem tech has similar features to Huchems' business model," said Choi Kyu-sung, CEO of Huchems. "The future sales of the company will grow to more than W150bn thanks to the spread of Ondol culture in China."

Choi said, "We will expand the market by diversifying the use of polybutene-1, which is the main product of piping material, by using food-packaging films, etc., by utilizing harmless product characteristics," said Choi. "By expanding our businesses into related fields such as functional synthetic resins, I plan to develop it as a core business along with my business. "