bhd corporation m rhombus sdn

www.huchems.com
Head Office : 5fl Kukdong Bldg., 60-1 Chungmuro 3ga, Junggu, Seoul
Yeosu Plant : 7-6 Walnaedong, Yeosu City, JeollaNamdo / Busan Office : 150-6 Geojedong, Yeonjegu, Busan
Pride
MOTTO
Huchems was established as a specialist fine chemical company,
Goals
Action
when it separated from Namhae Chemical in September 2002.
With 14 manufacturing plants in Yeosu Plant Complex, Korea,
Huchems provides industrial chemicals including nitric acid, DNT and MNB,
as well as basic chemical products, such as ammonia and urea to its customers
creating stable revenues every year.
Open
Management
Huchems has also expanded its business scope into the environmental industry,
and is now occupying a leading position in the greenhouse gas
Management
Policy
Technology
Management
emissions reduction market in Korea, thus contributing to the environmental
conservation of our planet.
Global
Management
Huchems is dedicated to providing the highest level of satisfaction
for its customers, stockholders and employees.
To develop into a world-class fine chemical company, we will continually
focus on enhancing competitiveness of our core business
and achieving business diversification and globalization.
Contents
03.
06.
08.
14.
16.
18.
20.
22.
Company Introduction
Corporate Culture
Chemicals
Aqueous Urea Solution
CDM
Corporate Partner
Stocks and Corporate Management
Vision
HUCHEMS
03
Company Introduction
Company Overview
Company Name : Huchems Fine Chemical Corporation
Establishment Date : September 15, 2002
History
Seoul�
Head�
Office
2002. 09
(Split-off from Namhae Chemical Corporation)
Paid- In Capital : KRW 21,291 million
Number of Employees : 200
Homepage : www.huchems.com
Busan�
Office
Locations
Yeosu�
Plant
Head Office 5fl Kukdong Bldg., 60-1 Chungmuro 3ga, Junggu, Seoul
2002. 10
Listed on the Korea Stock Exchange
2002. 1 1
Company-union peace agreement and corporate vision announced
2003. 07
Fourth Nitric acid plant completed
2004. 06
Listed on the KOSPI 200 Index
2006. 07
Huchems acquired by TaeKwang Ind. Co. Ltd.
2006. 12
Third Concentrated nitric acid plant and Sulfuric acid concentration
facility completed
Yeosu Plant 7-6 Walnaedong, Yeosu City, Jeollanamdo
Busan Office 150-6 Geojedong, Yeonjegu, Busan
Established as Huchems Fine Chemical Corporation
2007. 04
CDM greenhouse gas reduction facility completed
2009. 04
MNB plant completed
Awards
2002. 12
Received ISO9001 Quality Management Certification &
ISO14001 Environmental Management Certification
2003. 03
Received Excellent Supplier Recognition Award from DuPont
(only recipient among Asian companies or chemicals companies)
2004. 05
Received Korea Marketing Best Award for Brand Leadership (KMCA)
2005. 06
Received KGS/OHSAS18001, Occupational Health and
Safety Management System Certification
2005. 12
Received the National Assembly Commerce, Industry and
Energy Committee’
s Korea Valuable Management Award (Hankuk Ilbo)
2006. 07
Designated as an Environmentally-Friendly Company (Ministry of Environment)
2007. 11
Received Korea Idea Management Awards (Korea Suggestion System Association)
2008. 11
Acquired Safety Zone-Certi (Safety & Certificate Association of Korea)
HUCHEMS
05
Corporate Culture
Through environmental management to protect nature and humankind,
social contribution through community service and transparent ethical management,
Huchems is creating a better world for every customer, stockholder and employee.
Ethical Management
In carrying out its management activities, Huchems is dedicated to fulfilling its economic and legal
responsibilities, and is committed to sound corporate ethics as well. At Huchems, respect for all
humankind, customers, the law, corporate partners and employees form the essence of the company’s
management strategy. Huchems is striving to contribute not only to the economic development
of society but also to global prosperity and well-being.
Environment, Safety and Health Management
Huchems gives top priority to the environment, safety and health in product-development, design,
production and transportation and observes all relevant rules and regulations. Huchems received
the ISO14001, Environmental Management Certification and the KGS/OHSAS18001, Occupational Health
and Safety Management System Certification through its accident-free and environmentally friendly
management. Considering safety and health for all employees and customers, Huchems pursues
eco-friendly initiatives throughout all stages of the manufacturing process, from R&D to waste-disposal
through its environment, safety and health management policies. Every employee is committed to
eco-friendly management by actively participating in environmental cleanup and accident prevention.
Community Care
Through the Huchems Volunteer Service Team, Huchems is engaged in diverse social service
activities. With the Seoul headquarters delivering‘Lunch Boxes of Love’to seniors living alone
and the Yeosu plant’s close partnership with local facilities for the disabled,
Huchems continuously fulfills its corporate social obligations.
As a trustworthy company dedicated to the service, Huchems will continue to spread
the joy of sharing among all sectors of society.
HUCHEMS
07
Chemicals
Fine Chemicals Part
For the growth of chemical industry
Huchems produces DNT, nitric acid, MNB, ammonium nitrate and other fine chemical products
that form the foundation of the domestic chemical industry, and supplies them to major domestic
and global chemical companies.
DNT (DiNitroToluene)
Nitric acid, DNT and MNB are used to produce TDI and MDI, which are raw materials
DNT is used to produce polyurethane, explosives, etc. and is used for styrofoam, plastics, artificial leather, etc
for the production of polyurethane, the essential material used to produce automobile interiors,
furniture and construction materials. Ammonium nitrate is used as an industrial explosive
Applications
TDI(soft urethane foam), dye, explosives
in various civil works.
Chemical and
physical
properties
∙Appearance : Yellow needle shape or brown crystal
∙Structural formula: 2,4/2,6 DNT Compounds
∙Molecular weight : 182.14(g/mol)
∙Specific gravity : 1.33(@ 20℃)
∙Freezing point : 54℃ Min.
∙Smell : Sweet aromatic scent
∙Water solubility : 180ppm(@ 20℃)
∙Solvent solubility : It dissolves in alcohol, ether, benzene
and acetone.
In addition, basic chemical products such as urea and ammonia are vital raw materials
for various industries, forming the cornerstone of domestic economic development,
as well as enriching our daily lives as intermediate materials used in the production of foods,
textiles and construction materials.
Huchems will continue to strengthen its competitiveness in the fine chemical industry
through business expansion and contribute to customer service, boosting Korea's
industrial competitiveness through constant R&D and new business development.
Packaging and
delivery
Caution
Item
DNT
Packaging
Bulk
2,4 DNT 80%
2,6 DNT 20%
Delivery
Tank lorry
When leaked, it solidifies under normal temperature
MNB (MonoNitroBenzene)
MNB is used to produce polyurethane, MDI, etc. and also used for heat insulator compound wood, packaging materials,
artificial leather, etc
Applications
Intermediates of MDI(hard urethane foam), Aniline, perfumery
Chemical and
physical
properties
∙Appearance : Lemon yellow liquid
∙Smell : Sweet aromatic scent
∙Molecular weight : 123.11(g/mol)
∙Specific gravity : 1.206 ~ 1.212(@15~4℃)
∙Melting point : 5.4℃ Min.
∙Solvent solubility : It dissolves in alcohol, ether, benzene
and acetone.
Packaging and
delivery
Item
MNB
Packaging
Bulk
Delivery
Piping, Tank lorry
HUCHEMS
09
Fine Chemicals Part
For the growth of chemical industry
Nitric acid
MNT (MonoNitroToluene)
Nitric acid is used for polyurethane, dyes, nylon textiles, cosmetics, etc.
MNT is used for dyes, pigments, and to produce fertilizers. Classified as o-NT, m-NT and p-NT,
depending on the position of the nitro group (-NO2).
Products
Nitric acid 60%, 65%, 67%, 68%, 70%, Concentrated nitric acid 98%
Applications
Adipic acid, MDI, DNT, polyurethane, explosives, metal washing,
semiconductor etching solution
Chemical and
physical
properties
∙Appearance : Colorless or lemon yellow stimulus liquid.
It is very corrosive, and if it makes contact with air,
it produces stimulus white gas.
∙Smell : pungent odor
∙Molecular weight : 63.01(g/mol)
∙Water solubility : Very soluble
∙Solvent solubility : It dissolves in ether
Packaging and
delivery
Item
Packaging
Delivery
60% / 65% / 67%
Bulk
Tank lorry, ship
68%
Bulk
30/ 35kg Can
280kg Drum
Tank lorry, ship
Container
Container
70%
Bulk
Tank lorry
Ammonium nitrate
Applications
Dyes, pigments, TNT, fertilizer, toluidine
Chemical and
physical
properties
∙Appearance : Yellow liquid with thin and unique smell
∙Molecular weight : 137.14(g/mol)
∙Boiling point : 222~225℃
∙Melting point : -10~-3℃
∙Specific weight : 1.16 (@ 20℃)
∙Water solubility : 0.06%
∙Solvent solubility : It dissolves in alcohol, ether, benzene,
chloroform, petroleum ether, sulfur dioxide
and most of organic solvents. It is lightly
soluble in ammonia.
'
Packaging and
delivery
Packaging
Delivery
o-NT
Bulk
230kg Drum
ISO Tank
Tank lorry
Container
ISO Tank
m -NT
230kg Drum
Container
p -NT
230kg Drum
Container
P-Toluidine
Ammonium nitrate is used for explosives, semiconductor gas, anesthetic gas, etc. Huchems produces the
Ammonium nitrate with the types of liquid and prill.
Toluidine is used for dyes, pigments, and pesticides.
Applications
Applications
Explosives, fertilizer, anesthetic gas, semiconductor gas
Chemical and
physical
properties
∙Appearance : Odorless and colorless, almost white, deliquescent
rhombus crystal or particle
∙Molecular weight : 80.04(g/mol)
∙Boiling point : 210℃
∙Melting point : 170℃
∙Specific gravity : 1.725(@ 25℃)
∙pH : 5.4(@ 0.1M solution)
∙Water solubility : 110%(@ 0℃)
∙Solvent solubility : It dissolves in acetone, Ammonia,
Methanol, ethanol
Packaging and
delivery
Item
Item
Prill type
Liquid type
Packaging
Delivery
25/750kg Bag
30/500kg Bag
Bulk
Container
Cargo truck
Chemical and
physical
properties
'
Packaging and
delivery
Dyes, pigments, pesticides
∙Appearance : Glossy white or colorless firm or plate
∙Molecular weight : 107.16(g/mol)
∙Boiling point : 201℃
∙Melting point : 44~45℃
∙Specific weight : 1.046 (@ 20℃)
∙pH : 10.5 (extracted from solution)
∙Water solubility : 0.74%
∙Solvent solubility : It dissolves in ethanol, ether, acetone,
pyrimidine, methanol, carbon disulfide,
oil and diluted acid
Item
Packaging
Delivery
Toluidine
180/190kg Drum
190kg Drum
Cargo truck
Container
Tank lorry
HUCHEMS
11
Other Major Products
Product Link Table
For the growth of chemical industry
Vertical integration provides synergic effects in energy conservation, by-product
utilization and logistics through vertical integration for Huchems’products.
Ammonia
Ammonia is used to produce fertilizer, Nitric acid, refrigerants, and used as a material of patent
medicine and seasoning.
Applications
Packaging and
delivery
Nitric acid, fertilizer, ricin, medicine, seasoning, metal surface treatment
Item
Packaging
Delivery
Ammonia
Bulk
Tank lorry
Urea for Industry
Urea for Industry is used for resin, paints, feed, synthetic detergent, wastewater treatment, dyes,
and it is used to produce adhesives.
Applications
Packaging and
delivery
Foaming agent, urea resin, feed, dye, pigment, wastewater treatment
Item
Packaging
Delivery
Urea for Industry
20/25/500/1000kg Bag
Bulk
Cargo truck
BCT
Melamine
Melamine is used for MDF floor coating agents, tableware, car paints, and concrete compound.
Applications
Packaging and
delivery
Melamine resin, coating agent, car paints, concrete compound
Item
Melamine
Packaging
Delivery
25/500/1000kg Bag Cargo truck
Methanol
Methanol is used to produce MTBE for fuel oil, denatured alcohol and materials synthesis of formaldehyde.
It is also called methyl alcohol.
Applications
Packaging and
delivery
MTBE for fuel oil, denatured alcohol, analytical reagent
Item
Packaging
Delivery
Methanol
Bulk
Tank lorry
HUCHEMS
13
Aqueous Urea Solution
Urea solution for automobiles Nox
Clean and Nox Doctor
Increasing awareness of global warming and skyrocketing oil prices have directed
the global automobile industry's attention to environmentally-friendly technology.
With the enforcement of the Euro Ⅳ emission standards from January 2008 in Korea,
the need for economical anti-pollution technology has become even more immediate.
To meet this demand, Huchems has developed“Nox Clean and Nox Doctor,”high-quality
aqueous urea solutions that decompose atmospheric pollutants emitted by diesel automobiles.
Chemical and physical properties
∙Appearance: Clear liquid
∙Freezing point: -11℃
∙Smell: Smell of ammonia
∙Specific weight: 1.09(@ 20℃)
∙Molecular weight: 60.06(g/mol)
∙pH: 7~8
∙Boiling point: 103℃
∙Water solubility: 32.5%
Packaging
Nox Clean and Nox Doctor are reducing agents designed for exhaust gas recirculation systems
using SCR(selective catalytic reduction) process that injects aqueous urea solution
into the exhaust system of a diesel engine to create a catalytic reaction,
converting harmful emission gas into harmless water and nitrogen.
Nox Clean and Nox Doctor not only remove harmful pollutants but increase fuel efficiency
by approximately 10%, offering an economical solution in an age of ever-rising fuel prices.
Huchems sells these products through Doosan-infracore parts centers as well as SK gas stations
across the country, and foresees substantial growth in demand for the product in the future as
the number of diesel automobiles continues to increase.
※ Enforcement of EURO Ⅳ engine exhaust gas emission levels
EURO Ⅳ, a standard of exhaust emission, applies to new vehicles such as heavy-duty trucks and buses
10L
200L
1,000L
Packaging
10/200/1,000L
Bulk
Delivery
Delivery service/Cargo truck
Tank lorry
Bulk
Delivery
weighing over 3.5 tons.
<Permissible Emission Levels for automobiles>
NOx
PM
EURO Ⅲ
5.0
0.1
EURO Ⅳ
3.5
0.02
EURO Ⅴ
2.0
0.02
(g/KWh)
remarks
Sales
∙Nox Clean : Doosan-infracore parts centers (parts.doosaninfracore.co.kr )
legislative notice from Sep. 2009
∙Nox Doctor : SK gas stations (www.danew.co.kr)
HUCHEMS
15
Clean Development Mechanism
Huchems manages a Clean Development Mechanism business that sells CERs(Certificated
Emission Reductions) which is obtained by reducing greenhouse gas generated
during the nitric acid production process.
Business Areas
∙Installation of N2O reduction facilities in three nitric acid production plants.
∙Acquisition and sale of greenhouse gas emissions reduction credits.
Since the Kyoto Protocol, CDM projects, which are quickly developing into a high growth industry,
allow for the sale of greenhouse gas emissions reduction credits to countries responsible
for reducing emissions if companies in developing nations attract foreign investment
Emission Reduction : 1.5 million tons per year (CO2)
and succeed in reducing gas emissions.
In cooperation with Carbon GmbH, Austria, Huchems installed nitrous oxide(N2O) reduction
Business Effect
facilities in three nitric acid plants, reducing 1.5 million tons of greenhouse gas emissions per year,
∙Boosting profits by selling CERs.
the equivalent of emissions produced by 700,000 automobiles.
∙Reduction of greenhouse gas equivalent of emissions produced by 700,000
automobiles per year, helping to lessen global warming.
Huchems has been selling CERs since April 2007, achieving economic advantages
∙Acquisition of greenhouse gas reduction technology, contributing to domestic CDM business.
and taking a leading position in the greenhouse gas emissions reduction market in Korea
∙Improvement of national credibility regarding the climate change convention by registering
its nitric acid plants with the UN, the third highest among 700 nitric acid plants worldwide.
and global environmental conservation
Moreover, in September 2008, Huchems secured a stake in KCF (Korean Carbon Finance),
the first company specializing in carbon trade & investment in Korea. Through this project,
Huchems is preparing a bridgehead for expanding CDM business outside Korea while leading a
carbon exchange market in Korea.
HUCHEMS
HUCHEMS
18
17
Corporate Partner
Huchems became an affiliated company of TaeKwang Industry Co. Ltd.,
as the company had acquired Huchems' stocks from NACF (National Agricultural Cooperative
Federation) in June 2006.
TaeKwang is Korea’
s largest sports footwear manufacturer with a production
capacity of 17 million shoes per year. Founded in 1971, TaeKwang has been producing
top-of-the-line footwear for Nike thanks to its constant technological development and quality control.
After introducing global management in 1994, TaeKwang transferred its production facilities
to Vietnam and China, with its Korean facilities concentrating on new product research and quality
development. With thorough localization and social support activities, TaeKwang has contributed
to the improvement of Korea’
s relations with Vietnam and China and enhancement of Korea’
s
prestige abroad.
Through the synergic effects created by its partnership with TaeKwang,
Huchems will actively expand its operations abroad.
TaeKwang Ind. Co. Ltd.
CEO
Park, Yeon Cha
Foundation
1971
Address
258-9 Andong, Gimhae city, Gyeongnam, Korea
Business
Shoes manufacturing
Employee
700
Cheongdo TaeKwang Jehye Ind. Co. Ltd.
Foundation
1995
Address
Leewonjangjin, Raeseo, Chingdo, Sangdong, China
Area
Land 261,000㎡ , Building 144,000㎡
Business
Shoes manufacturing 7 million pairs/year
Local Investment
$ 70 million
Employee
13,000
TaeKwang Vina Ind. Co. Ltd.
Foundation
1994
Address
Vienhoa, HoChiMinh city, Dongnai, Vietnam
Area
Land 272,000㎡ , Building 188,000㎡
Business
Shoes manufacturing 10 million pairs/year
Investment
$ 115 million
Employee
18,000
HUCHEMS
19
Stocks and Corporate Management
Summarized Financial Statement
Stocks Overview
Stock code
069260
Shares outstanding
21,290,932 shares
Par value
KRW 1,000
Balance Sheet
(Unit : KRW million)
As of Dec
2008
2007
2006
2005
2004
311,560
251,045
221,338
219,677
227,106
Current asset
187,032
154,217
117,029
103,103
95,717
Fixed asset
124,528
96,828
104,309
116,574
131,389
Total liabilities
107,912
57,649
50,687
60,338
71,270
103,627
53,038
43,361
46,535
52,516
4,285
4,611
7,326
13,803
18,754
203,648
193,396
170,651
159,339
155,836
Total assets
Listed on the KOSPI 200 Index (since June 2004)
Current liability
Long-term liabilities
Shareholders
Shareholders’equity
Foreign investors
Paid-in capital
21,291
21,291
21,291
21,291
21,291
4.3%
Capital surplus
108,330
108,330
108,330
108,330
108,330
Capital adjustments
-19,445
-
-
-
-
-97
-
-
-
-
Accumulated other comprehensive income
Minority shareholders
Mr. Yeon-Cha Park
Taekwang Industry
Jeongsan CC,et al
21.5%
Retained earnings
Total liabilities & Shr’
s equity
93,569
63,776
41,031
29,719
26,216
311,560
251,045
221,338
219,677
227,106
37.5%
Income Statement
2008
2007
2006
2005
2004
Sales
415,663
301,750
300,976
275,943
306,192
Cost of sales
346,289
242,330
258,440
244,864
265,439
Gross profit
69,374
59,420
42,536
31,079
40,753
SG&A expenses
23,233
21,675
20,909
19,010
19,435
Operating profit
46,141
37,745
21,627
12,069
21,318
Non-operating income
24,211
4,493
2,846
3,426
3,753
Non-operating expenses
11,358
2,349
3,899
3,440
3,495
Pretax profit
58,994
39,889
20,574
12,055
21,576
Taxes
18,768
11,608
5,430
3,774
6,342
Net profit
40,226
28,281
15,144
8,281
15,234
Year to Dec
Institutional investors
22.7%
NACF
10.0%
Treasury stock
4.0%
(Unit : KRW million)
HUCHEMS
21
With its continuous commitment
to management that assures our clients,
A world-leading
fine chemical company
stockholders and employees,
Huchems is Korea's leading fine chemical industry.
The entire staff of Huchems is committed
Strengthen
core business
Environmental
business
Future growth
drivers
to strengthening the competitiveness of our existing
businesses through continued facility investment,
as well as boosting our global competitiveness
by developing new future growth drivers
Energy
business
in the environmental and energy industries.
Globalization
From our dominant position in the Korean chemical
industry, Huchems is now poised to become
a global leader in fine chemicals, making a valuable
contribution to the prosperity of our industry,
our nation and the global community.
HUCHEMS
23