Hanwha cracks new markets for explosivesHanwha Corporation will export approximately 30 billion won ($26.8 million) worth of explosives to the United Arab Emirates (UAE) and Thailand, the company said Wednesday.
The first batches were shipped to the two destinations on the same day.
Hanwha’s client in the UAE is Gulf Explosives.
The two signed a deal to export 9,000 tons of industrial gun powder and 2.6 million detonators for explosives buried underground. The materials will be used on construction projects in the country.
A temporary factory for explosives is to be built to which Hanwha will export raw materials. Such establishments are common on construction sites or mines that require large amounts of explosives during short periods of time.
This is the first time a local company secured an export contract for explosives from a Middle Eastern company.
Explosives are an old business in most parts of the world so it’s difficult for a foreign newcomer to win business over established competitors in the market.
For Hanwha, this is its first business in the region.
“We’re hoping the project will be an opportunity to spread word about Hanwha’s products in the market,” the company said.
Another batch of explosives was sent to MechChem in Thailand.
Hanwha’s deal with the local explosives company was for 700 tons of gun powder and 2 million detonators. It was Hanwha’s first deal in Indochina.
“Both deals are results of continuously discovering foreign clients and developing the quality of our products,” said Hanwha Corporation CEO Ok Kyung-seok. “Entering a foreign market is not an easy task but we will nonetheless keep up efforts to promote the advantages of Korean-made industrial explosives.”
Expanding abroad is a major initiative for Hanwha this year.
The company has customers in Indonesia and Australia and is looking for new markets. Demand for explosives is high in large countries with mining and construction projects. Korea is considered a saturated market with little growth potential.
Hanwha added that tests on the performance of their explosives recently received positive reviews in the United States and South Africa, which the company is hoping will lead to export deals in the future.
BY SONG KYOUNG-SON [firstname.lastname@example.org]