Paint company Samhwa Paint Industrial is pursuing a name change as it seeks a transition into a comprehensive chemical corporations.
On the 25th, according to the industry, Samhwa Paint Industrial submitted an agenda item to the 79th regular shareholders meeting to change the company name from "Samhwa Paint Industrial" to "SP Samhwa." Samhwa Paint Industrial also completed the trademark registration for "SP Samhwa" on Jan. 15.
If the agenda item passes at this shareholders meeting, the company will proceed with procedures reflecting the new name, including ▲amending the articles of incorporation ▲registering the name change ▲changing the stock name on the Korea Exchange (KRX).
Samhwa Paint Industrial said the move is a stepping stone to leap beyond its business domain into a comprehensive chemical corporations. The industry also noted that the shift is not unrelated to changes in internal and external conditions. With construction slumping, demand has weakened, and because the share of imported materials and supplies is high, expense burdens from exchange-rate volatility have grown, continuing to pressure earnings. To overcome this, the company plans to strengthen its electronic materials business, including secondary batteries.
Samhwa Paint Industrial's origin is Donghwa Industry, founded in 1946. Founders the late Chair Kim Bok-kyu and Chair Yun Hoe-jung built Korea's first dedicated paint plant. The company later changed its name once to Samhwa Chemical Industrial in 1953, and it has used the current name "Samhwa Paint Industrial" since 1964.