■ ‘LS Metal’ spinoff plan wins final approval at general shareholders meeting
■ Expected to generate stable income through professional management, large-diameter, thick pipe business
LS Industrial Systems said on March 19 that it held a general shareholders meeting, which approved a plant to spin off the metal business, and decided to establish a new undertaking, “LS Metal,” on April 1.
LSIS said it decided on the spinoff in order to establish an operational system that allows for professional and prompt decision-making suitable for the characteristics of the metal business, and to speed up the pace to generate profit by spinning off the metal business that produces and sells copper pipes and stainless pipes. These products generate little synergistic effect with, and are different in work nature from the “industrial electricity automation business,” which constitutes LSIS’ existing flagship business.
A LSIS official said, “The company has conducted the metal business for more than 10 years since it took over LG Metal in 1999, but many have argued that it should be operated more professionally, “As the large-diameter thick pipe business, for which the company invested in Busan, will generate stable income beginning this year, we decided to spin off the operation.”
The official added, “Through the spinoff of the metal business, LSIS will further strengthen its capacity in conventional operations, and assure continuous growth in the major framework of green business. The newly established LS Metal will be able to carry out operation in its full professional capacity, and seek to double growth by generating a win-win situation through a prompt decision making process,” adding, “We will extend all possible support to ensure that LS Metal will operate in a stable fashion.”
LSIS’ metal business posted 319.5 billion won in sales, 5.1 billion won in operating profit, and 8.4 billion won in pre-tax profit last year.
LS Metal, which has production plants in Janghang and Busan, aims to attain 50 billion won in profit on 1 trillion won in annual sales in 2015.
[Appendix-1] Current status of new company`s assets, capital (unit: million won)
Total Asset : 255,519
Total liability : 32,078
Total capital : 223,441