[Sponsored Report] GS focuses on diversification
At a recent strategy meeting with executives, Huh Chang-soo, the chairman of GS, emphasized the importance of being able to read changes, take bold actions to create innovative food items, nurture talent who can predict changes and make the organization’s culture flexible.
GS plans to continue these efforts throughout the second half of the year by researching new food items, strengthening business portfolios and securing consistent profit.
GS Caltex is diversifying its portfolio to reverse losses stemming from external market challenges. Some of GS Caltex’s biochemical products are in the process of becoming commercialized, and research and development of special materials that can be integrated into the company’s polymer business is also in progress.
GS Energy, which boldly invested in various sectors last year, will focus on increasing competitiveness in its main businesses while developing new sources of growth. The company has expanded its investment in liquefied natural gas development through operations at GS Power’s Anyang Combined Heat and Power Plant, as well as acquiring shares in SPPC and Dongducheon Dream Power, both operators of liquefied natural gas power plants.
GS Energy also plans to continue investing in overseas resources development. Last year, the company succeeded in acquiring 3 percent of participating interest in the United Arab Emirates’ coveted oil concessions, which only major global oil companies can acquire.
In the Middle East, GS E&C has been obtaining profitable orders through business planning projects. The company also seeks to expand into Southeast Asia and Africa.
In Spain, Brazil and Algeria, GS E&C is using its affiliate GS Iniva Environment, previously a Spanish company before it was taken over, to localize operations. In these countries, GS E&C is working on water management facility projects by providing engineering, procurement and construction services and owns concessions in those facilities.
In retail, GS Retail and GS Shop are putting forth future growth strategies through innovation. GS Retail has established a new payment method called “Mobile Pop,” which can be used for transactions at GS25 and GS Supermarket both online and at brick-and-mortar shops.
And through GS25’s mobile app “My Own Refrigerator,” customers can order prepackaged meals and pay for products before visiting the store.
To enhance the quality and taste of various food products, GS Retail established a food laboratory to come up with new food products in 2013, a first by a convenience store.
Meanwhile, GS Shop is branching out to global markets. It has already advanced into eight countries including India, Thailand, China, Vietnam, Indonesia, Turkey, Malaysia and Russia. The company’s home shopping business, in partnership with foreign companies, has reached sales of 1 trillion won ($873 million).
GS E&R is actively engaging in eco-friendly wind power development. Since September 2015, GS E&R has been administering 18 wind power generators at the GS Yeong Yang wind generation farm, with a production level of 3.3 megawatts.
In 2015, GS E&R established an energy storage system using a lithium ion battery that has the world’s largest storage capacity for electricity produced by wind power.
By 2021, the company aims to expand its wind power business to produce 450 megawatts.
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