GS Group chairman Huh Chang-soo wants his company to make a measured but significant leap into Chinese markets based on the technological prowess and experience it has gained from the domestic market.
“GS Group must focus its core competence on managing (the company’s) Chinese business operations,” Huh said on Monday when he made an on-site visit to the Chinese operations of GS Caltex and GS Global in Suzhou, Jiangsu Province.
Huh, flanked by GS Corp. vice chairman Seo Gyeong-seok and other executives, toured GS Caltex’s polymer alloy plant and GS Global’s steel service center to view the production site and raise the morale of the GS workers there.
GS Caltex is the only Korean oil refinery equipped with the polymer alloy production facilities. GS is currently supplying its polymer alloy products ― material used for car interior parts ― to domestic carmakers and electronics companies.
This year, GS Caltex expects to raise 1.2 trillion won ($1 billion) from producing and distributing petrochemical and polymer goods. The number is expected to go up to 12 trillion won when including Korea’s related material exports to China, which is why GS has its sights set on keeping China as a major client.
On Sept. 13, GS established GS Caltex China, a Chinese local corporation to oversee its petro-related businesses in China. GS Caltex represents the group’s efforts and determination to localize its Sino operations, according to both industry watchers and GS Caltex officials.
Huh is now seeking to steady the company’s existing Chinese business enterprises in China based on GS’ extensive domestic business experience, while encouraging employees to pursue new ground.
“We must properly understand the changes occurring in China, and seek business operations there, as it is rising as the center of global business and economy,” Huh said on Monday. “Affiliates must work closer together to create more synergy, such as joining hands to produce market-leading business ideas.”
For guaranteed sustainable growth in China, Huh added that it was essential that GS understand what the clients want, then offer them products going beyond their needs and thoughts.
By Kim Ji-hyun (email@example.com