Hanwha Solutions is restructuring its chemical operations with a new leadership layer, tapping the head of its advanced materials unit to steer strategy as the company navigates a prolonged petrochemical downturn fueled by Chinese oversupply.
Kim In-hwan, chief executive of Hanwha Advanced Materials, has been named business head of the chemical institutional sector, according to industry sources on September 2. The newly created role gives him oversight of key operational issues and mid- to long-term strategy for the division, which produces caustic soda, polyvinyl chloride (PVC), and polyolefin (PO).
The appointment establishes a co-leadership structure, with Kim working alongside Nam Jeong-un, the current CEO of the chemical institutional sector. A company official said the move is aimed at “strengthening business execution.”
The reorganization comes as Hanwha Solutions(009830) grapples with weak demand and a flood of supply from China that has squeezed margins across the domestic petrochemical industry. The chemical division posted an operating loss of 249.1 billion won ($183.4 million) last year. It swung back to profitability in the second quarter with an operating profit of 87.1 billion won ($64.1 million), but that recovery was partly driven by supply disruptions in the Middle East that lifted product prices — a tailwind expected to fade in the second half.
Kim brings more than three decades of chemical and materials experience within Hanwha Group to the role. Born in 1968, he earned bachelor’s and master’s degrees in chemical engineering from Pohang University of Science and Technology before joining Hanwha in 1993.
His early career at Hanwha Chemical included stints as head of the materials business team in the solar business unit, head of polysilicon business planning, and head of the polysilicon business division. That period coincided with the company’s push into polysilicon, giving him exposure to everything from initial planning through commercialization and operations.
In 2018, he moved to Hanwha TotalEnergies, where he led the resins business institutional sector for about four years. He returned to Hanwha Solutions in 2022 as head of the advanced materials institutional sector, and later that year became CEO of Hanwha Advanced Materials after the unit was spun off through a physical partitioning.
The new position has historical precedent within the company. Lee Gu-young, a former head of the chemical division, held a similar business chief role in 2018 before being promoted to CEO the following year. That track record has drawn attention to whether Kim’s appointment could position him for broader leadership responsibilities down the line.
For Hanwha Solutions, the restructuring signals an intent to accelerate a portfolio shift toward higher value-added products at a time when traditional petrochemicals face structural headwinds. The company’s chemical arm has been under pressure to find new growth engines as Chinese capacity expansions continue to weigh on global prices for basic chemicals.
By installing a veteran engineer with experience spanning new business development, traditional petrochemicals, and advanced materials, Hanwha appears to be betting that deeper technical expertise at the top of the chemical division will help it execute a more decisive strategic pivot.