South Korea’s Aekyung Chemical has decided to halt operations at its Chinese subsidiary and proceed with its sale as part of efforts to enhance competitiveness and financial effciency. In a regulatory filing on March 19, the corporation declared that Aekyung (Ningbo) Chemical Co., Ltd. will cease operations by August 31 before being sold. The buyer’s name has not been disclosed.
On a standalone basis, Aekyung (Ningbo) Chemical Co. Ltd.’s sales last year were 137.7-billion won ($92-mn). This corresponds to 8.38% of Aekyung Chemical’s sales. The corporation stated that at the same time as sale meditated in the con solidation financial statements will decrease due to the sale, operating losses will also narrow, that is anticipated to enhance the financial structure.
