SEOUL, KOREA - STX Energy has been reborn as "GS E&R" after being acquired jointly by GS Group and LG International Corp. Ha Young-bong, former president of LG International, was appointed as new president for the company. GS Group announced on February 13 that it would hold an extraordinary shareholders meeting on the 25th and decide matters such as corporate name change and new president appointment.

 

 

The name "E&R" comes from the words "environment" and "resources," reflecting STX Energy's main business areas including coal development, overseas resource development, and renewable energy resources.

 

As part of a wider strategic vision, GS Group will reduce its reliance on oil refining while strengthening power generation business. In order to change the business structure, the group has pursued a number of mergers and acquisitions in petrochemical and oil refining areas. Currently GS Caltex accounts for as much as 66 percent of the whole group's sales revenue (as of end-2012).

 

Meanwhile, STX Energy has combined cycle power plants in Gumi (N. Gyeongsang Province) and Ansan (Gyeonggi Province) while building a thermal power plant in Donghae (Gangwon Province). GS Group will finalize the acquisition by the end of this month when it gets approval from the Fair Trade Commission.