Monday, August 19th, 2013
Earlier this year, Tongyang Power won the project to run the Samcheok power plant beating other bidders such as Samsung C&T, Dongbu Group, and STX, earning points for the environment friendliness of its plan to build the plant on an idle cement mining site formerly used by Tongyang Cement. Once the power plant is up and running by 2019, the company expects to make more than 1.5 trillion won in sales revenue and 300 billion won in operation profit a year.
The group's effort to address its liquidity problem has been somehow successful and now it is turning its attention toward building up construction funds for the Samcheok power plant. One of the most realistic ways, the group figured, would be selling shares in Tongyang Power for which the group holds a 100-percent stake. Tongyang Group companies, including Tongyang Cement (55.02%), Tongyang Corp. (19.99%), and Tongyang Leisure (24.99%), own shares in the thermal power plant operator.
A Tongyang Group official said, "There is no reason for us to own 100 percent of the company. We will look for financial investors while retaining management control of the company."