Hansol Technicx's board resolved Friday to sell its Ochang factory in Ochang-eup, Cheongju, North Chungcheong Province, to Cosmecca Korea for 64 billion won (about $41.9 million). [Hansol]
Hansol Technicx's board resolved Friday to sell its Ochang factory in Ochang-eup, Cheongju, North Chungcheong Province, to Cosmecca Korea for 64 billion won (about $41.9 million). [Hansol]

Land and buildings at Ochang factory to go to Cosmecca Korea

Sale set for Dec. 24; company cites management efficiency, balance sheet improvement

Move seen as bid to ease financial pressure from acquisitions and equity investments

Hansol Technicx will sell its Ochang factory in Cheongju, North Chungcheong Province, for 64 billion won ($41.9 million), moving to shore up its balance sheet amid market concerns that a recent wave of acquisitions and equity investments could strain its finances.

The company's board met Friday and resolved to sell the land and buildings at the Ochang factory in Ochang-eup, Cheongju, to cosmetics manufacturer Cosmecca Korea, Hansol Technicx said. The total sale price is 64 billion won, with the transaction scheduled to close on Dec. 24.

The factory is an asset that has seen declining utilization as Hansol Technicx reorganized its domestic production footprint. As part of a broader restructuring of its global operations, the company has shifted production of some products from domestic facilities to overseas sites. The sale is intended to improve asset management efficiency by monetizing idle assets that emerged from that process.

The proceeds will go toward securing liquidity and improving the company's financial structure. In a regulatory filing, Hansol Technicx said the purpose of the disposal was to enhance management efficiency and strengthen its balance sheet.

The asset sale comes against the backdrop of stepped-up investment activity at the group level. Hansol Holdings disclosed in April that it was acquiring additional shares in Hansol Technicx, citing the need to fund new business investment at subsidiaries and strengthen management accountability. Around the same time, Hansol Technicx pursued a rights offering to raise funds for the acquisition of a non-memory semiconductor probe card manufacturer.

Some in the market had flagged concerns that Hansol Technicx's aggressive acquisition and investment activity could lead to higher borrowings. The Ochang factory sale is seen as a preemptive move to address those concerns. The 64 billion won cash inflow is expected to help the company improve near-term liquidity and financial stability.

The buyer, Cosmecca Korea, is a cosmetics original development manufacturing company with operations in Eumseong, North Chungcheong Province, and an expanding domestic and international business network. With cosmetics ODM companies ramping up production capacity to meet growing demand from the popular cosmetics industry's export expansion, the site acquisition is seen as part of Cosmecca Korea's longer-term effort to build out its manufacturing base.

"This asset sale is a strategic decision to improve our financial structure and enhance management efficiency," a Hansol Technicx official said. "We will do our utmost to strengthen financial soundness and maximize corporate and shareholder value with the resources secured."


hong@heraldcorp.com