Cheil Industries

Cheil Industries was a South Korean company associated with the Samsung Group whose history covered textiles, fashion, specialty chemicals, and electronic materials. Established in 1954 as Cheil Woolen Fabrics Industries, it initially focused on wool processing and textile production. Its early development included exports of Jangmi-brand carded wool to Hong Kong and the acquisition of a Korean Woolmark license from the International Wool Secretariat. The company changed its name to Cheil Industries in 1976 and subsequently broadened its industrial base. From the 1980s onward, Cheil Industries expanded beyond traditional textiles. It entered fashion with a men's wear line in 1989 and later developed businesses spanning casual clothing, women's wear, sportswear, footwear sourcing, and specialty retail. Brands and retail concepts associated with its fashion activities included Bean Pole, 10 Corso Como, and 8seconds. The company also adopted operational and brand-management initiatives intended to improve efficiency, including a just-in-time manufacturing system and repeated portfolio restructuring. Its fashion division was transferred to Samsung Everland in 2013 in a transaction valued at approximately 1.05 trillion won, according to the cited reference material. Cheil Industries also developed a substantial chemicals and materials business. Its chemical activities included acrylonitrile butadiene styrene products, high-impact polystyrene, polycarbonate, automotive-grade materials, and artificial marble. The company entered the polycarbonate business in the 2000s and completed a related production facility in 2008. In electronic materials, it worked on epoxy molding compounds for semiconductor packaging, chemical-mechanical polishing slurry, display components, color resist, anisotropic conductive film, battery electrolytes, and other functional materials. Its acquisition of Ace Digitech in 2007 expanded its presence in polarizing films for liquid-crystal displays. A major corporate reorganization occurred in 2014, when the chemicals and electronic-materials operations were merged with Samsung SDI. Samsung SDI acquired the relevant Cheil Industries business through a stock transaction reported at about 3.5 trillion won. Separately, Samsung Everland changed its name to Cheil Industries, creating a successor company that retained the Cheil Industries identity while representing a different business configuration. In October 2014, this successor submitted plans for an initial public offering in South Korea. In 2015, the successor Cheil Industries pursued a merger with Samsung C&T in an all-stock transaction reported at approximately 7.7 billion US dollars. The proposal became a significant corporate-governance issue because it was viewed as helping consolidate Lee Jae-yong's influence within the Samsung Group. Elliott Associates, which held a reported 7.1 percent stake in Samsung C&T, opposed the transaction and pursued legal action seeking to prevent it. Shareholders approved the merger in July 2015, and the transaction was completed in September. The combined company adopted the name Samsung C&T. Cheil Industries therefore ceased to exist as a standalone corporate entity, while its earlier chemicals and electronic-materials activities became part of Samsung SDI and its later corporate identity was absorbed into Samsung C&T.

Cheil Industries began in 1954 as Cheil Woolen Fabrics Industries, a Korean manufacturer centered on wool and textiles. During its first decade it established export credentials by shipping Jangmi-brand carded wool to Hong Kong in 1961 and strengthened its technical and market position by obtaining a Korean Woolmark license from the International Wool Secretariat in 1965. It established Cheil Synthetic Fiber in 1972 and adopted the Cheil Industries name in 1976. The company expanded its industrial capabilities during the following decades. Its activities came to include synthetic fibers, textile products, and later fashion. A men's wear line launched in 1989 marked a more direct move into apparel, after which the company diversified into casualwear, women's clothing, sportswear, footwear sourcing, and specialty retail. It promoted manufacturing and operational improvements, including early use in Korea of a just-in-time production system. Its fashion portfolio included Bean Pole, the 8seconds specialty retail brand, and the 10 Corso Como concept. Cheil Industries simultaneously built businesses in chemicals and advanced materials. It developed chemical products including flame-retardant and sheet ABS, flame-retardant high-impact polystyrene, polycarbonate, automotive materials, and artificial marble. In 1992 it developed a high-density carpet reported as having a density of 1,130,000, and in 1994 its Hwasung research center succeeded in developing EPS for foundry applications. In 2007 it developed Tempist Stylist, described in the reference material as a highly transparent-chip artificial marble, and entered polycarbonate production around the same period. A new polycarbonate plant was completed in March 2008. Its electronic-materials business originated with the development of epoxy molding compound in 1996. These activities later included semiconductor materials such as EMC and CMP slurry; display materials such as light-guide and diffusion plates, color resist, and anisotropic conductive film; electrolytes for secondary batteries; and other functional materials. The 2007 acquisition of KOSDAQ-listed Ace Digitech added a polarizing-film business serving liquid-crystal display manufacturing. Cheil Industries underwent several major portfolio and corporate changes. In 2013, its fashion business was sold to Samsung Everland for approximately 1.05 trillion won. In 2014, the chemicals and electronic-materials company merged with Samsung SDI and became part of Samsung SDI's chemicals and electronic-materials operations. Samsung Everland subsequently changed its name to Cheil Industries, meaning that the Cheil name continued in a reorganized corporate vehicle with a different business profile. That company submitted an initial public offering plan in October 2014. The final stage of the company's history concerned Samsung Group governance and succession. In 2015, Cheil Industries proposed an all-stock merger with Samsung C&T. Elliott Associates, a US-based investment firm holding a reported 7.1 percent of Samsung C&T, opposed the transaction and sought to block it through court proceedings, arguing that it did not adequately serve Samsung C&T shareholders. The merger received shareholder approval in July 2015 and was completed in September. The combined company was named Samsung C&T, ending Cheil Industries' existence as an independent company.

1. 2015Merger with Samsung C&T completed

   Following shareholder approval and opposition from Elliott Associates, the merger is completed and the combined company becomes Samsung C&T.

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2. 2014Chemicals and electronic materials merge into Samsung SDI

   The original Cheil Industries merges with Samsung SDI, while Samsung Everland adopts the Cheil Industries name.

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3. 2013Fashion business transferred to Samsung Everland

   Cheil Industries sells its fashion business to Samsung Everland.

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4. 2008Polycarbonate plant completed

   A new production facility for polycarbonate is completed and becomes operational.

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5. 2007Ace Digitech acquisition and artificial-marble development

   Cheil acquires Ace Digitech to enter polarizing film and develops the Tempist Stylist artificial-marble product.

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6. 1996Electronic-materials business begins

   The company develops epoxy molding compound for electronic and semiconductor applications.

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7. 1989Entry into men's fashion

   Cheil Industries launches its first men's wear line and begins a broader expansion into fashion.

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8. 1976Company adopts the Cheil Industries name

   Cheil Woolen Fabrics Industries changes its corporate name to Cheil Industries.

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9. 1972Cheil Synthetic Fiber is established

   The company broadens its textile base through a synthetic-fiber operation.

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10. 1965Korean Woolmark license obtained

    The company obtains a Korean license for the Woolmark trademark from the International Wool Secretariat.

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11. 1961First reported wool export to Hong Kong

    Cheil exports 3,000 pounds of Jangmi-brand carded wool to Hong Kong.

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12. 1954Cheil Woolen Fabrics Industries is established

    The company begins operations as a Korean wool and textile manufacturer.

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A diversified Samsung-affiliated industrial company that combined Korean textile heritage with fashion retail and increasingly specialized chemical and electronic-materials businesses.

• Wool and synthetic fibersTextiles and fibers1954

  Cheil Industries began with wool processing and expanded into synthetic fibers. Its early textile business included Jangmi-brand carded wool and supported the company's initial export activity and later diversification.

• Fashion and apparelFashion1989

  The fashion division grew from the company's textile base into men's wear, casualwear, women's apparel, sportswear, footwear sourcing, and specialty retail. Associated concepts included Bean Pole, 8seconds, and 10 Corso Como. The division was transferred to Samsung Everland in 2013.

• ABS, HIPS, and polycarbonateSpecialty chemicals1989

  Cheil produced flame-retardant ABS, sheet ABS, flame-retardant high-impact polystyrene, automotive-grade ABS, and polycarbonate. These materials served industrial, automotive, and molded-product applications.

• Artificial marbleFunctional materials2007

  The company developed engineered artificial-marble materials, including Tempist Stylist, described as a highly transparent product containing transparent chips.

• Semiconductor materialsElectronic materials1996

  The electronic-materials portfolio included epoxy molding compound for semiconductor packaging and chemical-mechanical polishing slurry, along with other materials used in electronics manufacturing.

• Display materialsElectronic materials2007

  Cheil developed light-guide plates, diffusion plates, color resist, anisotropic conductive film, and polarizing film through its Ace Digitech acquisition. These products supported liquid-crystal display and related panel manufacturing.

• Battery and functional materialsElectronic materials

  The company's materials portfolio also included electrolytic solution for secondary batteries and functional products such as EMS and paste.

• 2015Merger with Samsung C&TM&A

  The proposed combination was regarded as relevant to the consolidation of Lee Jae-yong's control within Samsung Group and became the subject of shareholder and court opposition.

  What changed. Cheil Industries pursued an all-stock merger with Samsung C&T, reported at approximately 7.7 billion US dollars.

  Aftermath. Shareholders approved the deal in July 2015, it was completed in September, and the combined company was named Samsung C&T.

  Reported transaction value. Approximately 7.7 billion US dollars (2015)

  • Elliott Associates — The investment firm, which held a reported 7.1 percent of Samsung C&T, opposed the merger and sought to block it through court proceedings and shareholder opposition.
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• 2014Merger of chemicals and electronic materials operations with Samsung SDIM&A

  Cheil Industries had developed a diversified chemicals and electronic-materials platform alongside its historical textile activities.

  What changed. The chemicals and electronic-materials company merged with Samsung SDI in a stock transaction reported at approximately 3.5 trillion won.

  Aftermath. The businesses became part of Samsung SDI's chemicals and electronic-materials operations, while Samsung Everland changed its name to Cheil Industries.

  Reported stock transaction value. Approximately 3.5 trillion won (2014)

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• 2013Transfer of the fashion business to Samsung EverlandM&A

  Cheil Industries was reorganizing its portfolio while maintaining a growing presence in industrial chemicals and electronic materials.

  What changed. The company sold its fashion business to Samsung Everland in a transaction reported at approximately 1.05 trillion won.

  Aftermath. The fashion operations moved to Samsung Everland, which later adopted the Cheil Industries name.

  Reported transaction value. Approximately 1.05 trillion won (2013)

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• 2015Cheil Industries proposes merger with Samsung C&T

  Cheil Industries announced an all-stock transaction to combine with Samsung C&T. Elliott Associates opposed the deal and challenged it through legal and shareholder channels.

  M&ALawsuit
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• 2015Shareholders approve Cheil Industries–Samsung C&T merger

  Shareholders approved the merger in July, and the transaction was completed in September. The resulting company was named Samsung C&T.

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• 2014Cheil Industries submits initial public offering plans

  The successor Cheil Industries submitted plans for a South Korean initial public offering involving approximately $1.41 billion in planned shares.

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• 2014Samsung SDI absorbs Cheil Industries chemicals and electronic-materials operations

  Cheil Industries merged with Samsung SDI, transferring its chemicals and electronic-materials activities into the enlarged Samsung SDI.

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1. Cheil Industries