Headlines for August 2016
1. [Hanwha Group] Chairman Seung Youn Kim visits Hanwha Q CELLS Jinchoen solar cell plant “Hanwha members, you are my sun.”This is the phrase written on a mini module by Chairman Seung Youn Kim during his recent visit to Jincheon plant of Hanwha Q CELLS as he encourages the employee. This affectionate phrase towards the employees shows his strong will to develop the solar business as the future industry of Korea. Chairman toured around the production facilities and had luncheon with the production employees and encouraged them. Chairman Kim Seung-youn recently visited Hanwha Q CELLS’ solar cell factory built in Jincheon industrial complex in Chungbuk province on July 5th. Nam Seong-woo, CEO of Hanwha Q CELLS explained about the factory and the Chairman looked around the production facility and encouraged the employees. Chairman Kim Seung-youn said, “Over the last 5 years, the Group has strived to concentrate on solar projects with an extraordinary commitment. We have considered the solar projects as the future business that we should develop with a long-term vision for the future of our humanity. And we have been fulfilling a great vision to foster it as another future industry that represents Korea.”Moreover, he mentioned “We have changed the factory location from Malaysia where has lower manufacturing cost to Korea to fulfill our duty for increasing jobs and the strategic growth of solar industry in Korea.”, and “For this, we have invested 600 billion won to Chungcheong province area so far and created about 1,300 jobs.”He emphasized that despite the current difficult economic situations the company is bringing the energy to the local economy by fulfilling ‘Going Further Together’ with the communities and contributing to the further development of the national economy. On that day, Nam Seong-woo, CEO of Hanwha Q CELLS presented a memorial tablet made with the first solar battery cell that was produced in Hanwha Q CELLS’ Jincheon plant to the Chairman. And Chairman Kim Seung-youn signed and gave the mini module with the phrase “Hanwha members, you are my sun.” During lunch, the Chairman visited a company cafeteria to encourage employees and shook their hands. He also had lunch with them and had a conversation while they were eating Seolleongtang together.Hanwha Q CELLS’ Jincheon plant is built on 180,000m2 land. And it can produce cells for the total of 1.4 GW. So the total production capacity is now over 5.2 GW throughout Korea, Malaysia, and China. Hanwha Q CELLS became even more firmly the global No. 1 in solar cell production. 2. [Hanwha Group] 2016 Hanwha Chairman's Cup National Shooting Competition sponsored by Hanwha Group was heldPrior to visiting the factory in Jincheon, Chairman Seung Youn Kim visited Cheongju General Shooting Gallery in Chungbuk province where the opening ceremony of Hanwha Chairman’s Cup National Shooting Competition 2016 was held. This competition is the last official event before the Olympic Games Rio 2016. Chairman Kim cheered the players to do their best to raise the status of Korean shooting team and to show the potential of Korean players at the Olympic Games Rio. Hanwha Chairman’s Cup National Shooting Competition 2016 was held at Cheongju General Shooting Gallery in Chungbuk province on July 5th. The event was to reenact the glory of the London Olympic in Rio and is a pre-game for the final testing of the national shooting team. This event is one of five major shooting competitions in Korea. And this year marked its 9th event. Chairman Kim Seung-youn has founded this event in 2008 to promote unpopular shooting sport and to expand its popularity. And it has become the top national competition and the first and the only shooting competition organized by a private company. Especially, all of conditions such as the stadium facilities, indoor environment, and the rules are prepared as same as the local conditions in Rio to increase the players’ performances. Chairman Kim Seung-youn said, “Since getting the unprecedented results in shooting sport with the best performance ever in 2012 London Olympic, the status of Korean shooting team has been changed.” And he asked to put souls on every bullet to the challenge for the higher goals in Rio Olympic. “A Shooting is the sport that requires a high degree of mentality and concentration. The moment you draw a line that you think you cannot do, you will face the limitation. But the moment you believe you can do it, a miracle will begin. I expect that you bring another big surprise once again. And we want to hear a good news from you in Rio.”Since June 2002, the Group has been serving as the president of the Korea Shooting Federal. And the Group has been providing a full support for the development of the shooting sport in Korea by providing about 12.5 billion won to the shooting development fund.Particularly, through establishing Hanwha Chairman’s Cup National Shooting Competition in 2008, the Group has helped to promote unpopular shooting sport. The competition improved players’ performances substantially. As a result, Korea became one of the greatest sporting nations through the best performances at the international competitions such as the Olympic and Asian Games. 3. [Hanwha Corportaion] Ranked 277th on Fortune “Global 500” ListI am sure you’ve heard about Fortune Global 500 before. US Fortune magazine has published the global brand index since 1990. The annual revenues of the top global corporations are measured for this index. 15 Korean companies have been ranked. And out of 500 corporations in the world, Hanwha has listed on 277th. Hanwha Corporation has made a great progress among the Global 500 Companies by Fortune magazine. This year, Hanwha ranked 277th from 329th last year by climbing 52 steps. Many people paid the attention to this change because it is the greatest improvement among Korean companies ranked in Global 500. It is very fulfilling. Revenues have increased from 37.5 trillion won in 2015 to 41.4 trillion won in 2016. This figure is comparable to the global companies. The reason for this rapid growth was credited to the four new affiliates that joined Hanwha through M&As last year. These four companies, Hanwha Total Petrochemical, Hanwha General Chemical, Hanwha Techwin, and Hanwha Systems had improved their performances last year. In addition, Hanwha Defense Systems joined the Group as the newest member of Hanwha. We expect to see a higher ranking in 2017 through the synergy of the defense companies. There is one more thing that we can’t overlook. Hanwha Q CELLS contributed to the new ranking. And Hanwha Life Insurance that reached the total assets of 100 trillion won in the earlier this year also helped increasing the ranking. We look forward to seeing further improvements of Hanwha next year. 4. [Hanwha Galleria] The grand opening of Galleria Duty Free 63Galleria Duty Free 63 finally had its grand opening on July 15th. Since the pre-opening on Dec 28th 2015, every department such as tourism, marketing, and MD has been improved gradually. The ultimate plan is running the duty free business as one-stop for shopping and tour that connecting to the observatory and the aquarium in 63 Building. Galleria Duty Free 63 is now fully opened in 63 Building. And its one-stop tour & shop of 63 Building is fully operating. They are going to focus on tourism products. And customers visiting Galleria Duty Free 63 will enjoy tour courses like remodeled Aqua Planet 63, 63 Art, and the observatory while shopping.Galleria Duty Free 63 has about 540 brands and shops at the grand opening. And they are improving the MD organization. They added three exclusive luxury brands that opened only in Galleria Duty Free 63. Their luxury MD was strengthened by having four exclusive luxury brands such as Stefano Ricci opened in April, Golden Goose, Launer London, and Corneliani. In early August, Chanel Cosmetic will be launched for the first time among duty free shops in Seoul. In September, the brands of Kering Group such as Bottega Veneta, Saint Laurent, Balenciaga, etc. will be launched one by one. And it will help to strengthen the business.Also Galleria Duty Free 63 signed a marketing partnership agreement with Wanda Group, the largest distributor in China to improve marketing contents. Galleria Duty Free 63 plans to attract Chinese tourists through 120 million members of Wanda Group. They are going to create the mileage partnership and promotional events by connecting two online shopping malls, Feifan of Wanda Group and Galleria duty free online shop. “Feifan is the platform financially supported by Wanda Group providing online services for off-line distribution/service businesses. Signing the MOU with Hanwha Galleria has a meaning that it is the first collaboration with a foreign company, one of Korean off-line distribution companies as the first overseas expansion.On the grand opening day, the ceremony was held while the participants including Hwang Yong-deug, CEO of Hanwha Galleria, employees of Duty-free business headquarter, and parties of Duty-free industry attended. A day before the grand opening, Chairman Kim Seung-youn visited 63 Building to see the newly developed contents such as Galleria Duty Free 63 and Aqua Planet 63. He also encouraged employees who have worked very hard. Chairman also said that Galleria should contribute to the tourism industry of Korea by providing differentiated duty-free business despite the difficult distribution business environment and should continue serving the country through the business. 5. [Hanwha City Development] Held a ground-breaking ceremony for the Youngin Techno ValleyHanwha City Development has been developing the industrial complex for high-tech in Daejeon, Asan, Seosan, Kimhae, and Hwasung. Through their experiences in the past and know-hows from successful cases, they had a groundbreaking ceremony of Yongin Techno Valley which is their 6th industrial complex for high-tech. Yongin Techno Valley is built on 840,000m2 land in Deokseong-ri, Idong-myeon, Cheoin-gu. And it is the first industrial complex developed in Yongin city. Hanwha City Development, Hanwha E&C, and Yongin city have invested together for this project as a public-private partnership.Park Dong-il, COO of Hanwha City Development said in his speech that they are going to try their best to attract companies with outstanding performances that can contribute to the development of the local economy as well as making Yongin as a self-sufficient city. Yongin Techno Valley has received a lot of positive feedbacks from companies because of its convenient location and the appropriate selling prices. There have been 76 companies signed the contract during the presale last year. This is 72% of the entire selling units. And many companies continue to show their interests.Yongin Techno Valley project scheduled to complete in 2018. It is expected to create over 6,000 jobs and have about 890 billion won worth of ripple effect to the economy.6. Hanwha Q CELLS - Completed Hanwha Seosan Solar Venture ComplexAs the needs of a new clean energy is rising, solar energy is getting more attentions as a solution to the air quality problem. The Group completed the Hanwha Seosan Solar Venture Complex with Chungnam Center for Creative Economy and Innovation. This solar venture complex is built to support small and medium sized solar companies for incubating, research activities, developing new products, and commercializing. A forward operating base of the solar industry Hanwha Seosan Solar Venture Complex has been launched. It would be in charge of nurturing small solar energy companies, developing solar energy business, and commercializing. The complex is a 4 story building with total floor area of 8.474 ㎡ and built on 16,734 ㎡ land in Seosan, Chungnam province. The construction started at the end of September 2015 and completed at the end of June. When the Chungnam Center for Creative Economy and Innovation was launched in May 2015, the Group announced to create a solar business cluster in Chungcheong province area based on the global number one solar business of the Group through combining solar business commercialization hub in Chungnam province area, solar energy production plants in Chungbuk province, and solar R&D function of Daedeok Science Complex in Daejeon. The Group has invested 20 billion won in Hanwha Seosan Solar Venture Complex, and they are planning to support about 3 billion won every year for the operation. About 100 people including Nam Seong-woo, CEO of Hanwha Q CELLS, Lee Byung-woo, Director of Chungnam Center for Creative Economy and Innovation, Lee Wan-seop, Mayor of Seosan City attended the ceremony on July 22nd.Nam Seong-woo, the CEO of Hanwha Q CELLS said in his speech that the company is going to fulfill ‘Going Further Together’ through the completion of the solar venture complex. He also said that he expects to see more jobs created and the fulfillment of creative economy by providing opportunities to expand domestically and globally through financial supports and excellent products. Currently, there are total of nine solar research companies specializing in solar midstream, downstream sectors, and solar applications have moved in the complex. 22 more companies are scheduled to move in by the end of 2016. We’ve developed a solar charger for cellphones and moved in to the complex to grow with Hanwha Group. We are going to make more solar application products that can be widely used by consumers with Hanwha QCELLS. Chungnam province has the second largest amount of sunshine in Korea, and it also has lakes and the massive reclaimed land. It is the ideal location for our floating solar farm business. It is a chance to make a connection with Hanwha, and I am pleased for this opportunity to move in to the complex.The special benefits and supports are provided to the companies moved in the complex. They are offered free-rent for the first two years and an outdoor test bed space for testing products. They are also provided a cell module test facility cooperating with Hanwha Group’ affiliates and certification authorities. In addition, these companies are going to receive other supports in various forms such as the new regeneration energy innovation investment fund.7. [Hanwha Hotels & Resorts] 63 Sea World has reopened with the new name, Aqua Planet 63Do you know which aquarium first opened in 1985? Yes, it is 63 Sea World. 63 Sea World has reopened with the new name, Aqua Planet 63, after finishing remodeling which took about one year. It used to be the first aquarium in Korea but now it has started the new history as the first new concept multi-cultural aquarium. Many employees including Moon Seok, President & CEO of Hanwha Hotels & Resorts gathered together to celebrate the opening ceremony of new aquarium. Aqua Planet 63 was designed with a storyline that taking a trip to Aqua Planet 63 where many kinds of marine animals live after a wormhole was discovered underground of 63 Building.You will get attracted to Aqua Planet 63 while enjoying various fish tanks which is combined the new digital technology like a projection mapping and the longest coral reef fish tank. There are performances that added arts and visual elements. You can see the new concept multi-cultural aquarium through various cultural contents.8. [Hanwha Defense Systems] Held a new vision proclamation ceremonyThere are three land weapon manufacturers in Korea. They are Hanwha Techwin, Hyundai Rotem Company, and Hanwha Defense Systems. Doosan DST changed its name to Hanwha Defense Systems by becoming a member of Hanwha on May 31st. Hanwha Defense Systems announced the new company vision and the new start of becoming a leader in the global defense industry. Hanwha Defense Systems held a proclamation ceremony of new vision at Pullman Hotel in Changwon, Gyeongnam province on July 20th. About 350 people including Shin Hyun-woo, CEO of Hanwha Defense Systems, employees, and the members of partner companies attended. The new vision is becoming a leader of the global defense industry that provides the trustful defense solutions. The CEO Shin said in his speech that Hanwha Defense Systems is the main company of Hanwha Group’s defense business which is the core growth engine of Hanwha Group. And he also mentioned that the company will play a pivotal role in helping the Group to grow as a ‘top-tier of the global defense.’ He encouraged the employees to do their best to accomplish the new vision with passion and pride.Hanwha Defense Systems is a representative company of Korean defense, specializing in manufacturing armored vehicles, anti-aircraft weapons, guided missiles, launchers, etc. It achieved the total revenue of 693.2 billion won, 40.9 billion won operating profit, and 5.9% of the operating margin. They proposed the goals to reach the revenue of 1.2 trillion won by 2020 through the new vision and to grow as a leader of the global defense industry with the revenue of 2.3 trillion won in 2025. In order to accomplish these, each business unit is going to set ‘Three Top Strategies’ and focus on executing them. First, they are planning to improve Hanwha Defense Systems’ own stand-alone value by expanding the size of current projects. The next plan is expanding the business areas by maximizing the synergies of three defense companies of the Group. They are going to increase the exports with the co-marketing to the global market. The last one is leading the future weapon systems by using the core technologies and building the foundation for sustainable growth. The employees who attended the ceremony expressed that they are expecting to see the company grows as the newest member of Hanwha Group which is concentrating on the defense industry. And they have gained energy to run towards the new goals. The industry is paying attending to Hanwha Defense Systems because they will expand their business areas through the collaboration between three defense companies of the Group, Hanwha corporation, Hanwha Techwin, and Hanwha Systems. The People are also expecting to see Hanwha Defense Systems plays an important role for growth of the defense industry.We hope Hanwha Defense Systems to achieve their vision.