Published : 2013-12-08 19:38
Updated : 2013-12-11 17:15
Following its change of business from clothing manufacturer to component supplier, Samsung’s Cheil Industries is expected to change its name to fit its new role.
According to those close to the Korean conglomerate, “Samsung Industries” and “Samsung Chemicals” are the two options that the company is considering.
Going singular may also be an option ― “Samsung Industry” or “Samsung Chemical.” The latter is already being used by the U.S. chemicals subsidiary established in 2001 with the support of Cheil Industries.
Samsung Chemical is involved mainly in selling and distributing the plastic resin and solid surface materials manufactured by Cheil Industries.
“To my knowledge, it’s only a matter of time before Samsung makes an official announcement,” a source said, declining to be identified.
One other possibility for the new name is “Samsung Cheil Industries,” he added.
The change had been widely expected, since as of this month, Cheil Industries has officially rid itself of all fashion-related business that was handed over to Samsung Everland, the de facto holding company for Samsung.
With the move, Lee Kun-hee’s second-eldest daughter Seo-hyun, who was senior executive vice president of Cheil Industries, was made president of Samsung Everland.
At the same time, Samsung Electronics’ LED vice president was named head of Cheil Industries.
Other significant business changes include the purchase of a majority stake in German-based OLED technology and material provider Novaled. Samsung Electronics also bought a stake.
The bolstering of Cheil’s materials aspect may be a move to secure a stable supplier for Samsung’s main cash cow, Samsung Electronics.
Cheil Industries was first established in 1954 by Samsung founder Lee Byung-chull. It started to evolve into a materials firm in the late 1990s.
By Kim Ji-hyun (firstname.lastname@example.org)