Techcross, the world’s largest manufacturer of the ballast water treatment system, entered into the land-based water treatment business. On September 26, Techcross completed acquisition of LG Hitachi Water Solutions and HiEntech, both former subsidiaries of LG Electronics.
In March, LG Electronics announced the sale of its water treatment business as part of the reorganization and sale of the non-core business. Four companies participated in the bidding, and LG Electronics, which gave the greatest weight to the continuity of operational excellence of two subsidiaries, chose Techcross, the sole strategic investor among the candidates, as the buyer of the two companies.
This contract enabled Techcross, which had been in the ballast water treatment business, to grow into a comprehensive environmental company with newly added land-based water treatment businesss.
LG Hitachi Water Solutions, an environmental facility design and construction company, posted sales of 350 million dollars in the previous year, and HiEntech, a water treatment and management company, had sales of 227 million dollars (130 million dollars for its headquarters and 97 million dollars for its Chinese subsidiary). The two companies are quite solid with the total sales of about 580 million dollars combined. Both with LG Electronics as a parent company, they have been gearing up for future growth with continuous efforts to expand external networks for orders.
With sales expected to surpass 170 million dollars this year, Techcross intends to achieve a sound profit and intermediate-term goal of 420 million dollars through increasing orders and business efficiency. In addition, Techcross holds patent and original technology for electrodes, a key component of electrolysis water treatment technology, which makes limitless future development possible. In this regard, Techross intends to achieve long-term synergy with the improved competitiveness and performance of the company by sharing its original technology for water treatment and the capacity for global management with the subsidiaries.
“Techcross, which started as a small start-up company in the past, has risen to the world’s No. 1 position in the ballast water treatment system market through continuous investment in R&D and human resources. The two companies, new family members of Techcross, also achieved remarkable results in the shortest period of time, and have potential to take a leap in sales by increasing external orders. Based on the capital and know-how of the three companies accumulated in the growth process, Techcross has a goal to grow into a unique environmental company that can compete with global companies such as Veolia Environment S.A. in France and Xylem Inc. in USA.” said Wayne Park, CEO of Techcross.
LG Hitachi Water Solutions and HiEntech, which became the family members of Techcross, will be renamed to Techcross Water & Energy Inc. and Techcross Environmental Services Inc. in time for the completion of the acquisition.