South Korea’s leading chemical company LG Chem launched a fertilizer affiliate, FarmHannong, on Tuesday after completing months-long acquisition efforts.

LG Chem chief executive Park Jin-soo will take helm of FarmHannong, formerly owned by Korean conglomerate Dongbu Group, and stabilize the firm’s businesses, including fertilizers and pesticides, according to the chemical firm. 

Founded in 1953, FarmHannong is a leader in the agricultural chemicals sector in Korea. However, Dongbu Group has been facing a financial crunch and the company put it up for sale in April in 2014. The LG Group affiliate was successful in sealing the takeover deal.

LG Chem spent 425 billion won ($374 million) to acquire the fertilizer business.

Speaking at the launch event of the new LG affiliate, CEO Park said, “I will make the utmost efforts to stabilize the businesses of FarmHannong, guaranteeing that the existing executives and employees can stay at the firm.”

FarmHannong is the No.1 player in the domestic sector for crop protection materials with a 27 percent market share and the second largest firm in the seed and fertilizer market here with a 19 percent market share.

The company, which has 1,055 executives and employees, posted 628 billion won in sales with its operating profit standing at 22 billion won last year.

By Kim Young-won (wone0102@heraldcorp.com)