LONDON Kwon Oh-chul, the incoming CEO of Hynix Semiconductor Inc. (Icheon, Korea), is looking forward to good year in terms of sales and profits and that this will let Hynix reduce its debts and for banks to offload more of their stake in the company, according to reports.
Kown, who took up his post on Monday (March 29) is quoted as saying "We are only meeting 60 percent of customer demand. We have high expectations for profits and revenue as overall market conditions look good."
Hynix is mainly a manufacturer of DRAM but that market is undersupplied at present and spot prices are moving upwards. The company also makes flash memory, which is also in demand. "As long as the economic recovery is smooth, supply-demand conditions will be favorable for memory suppliers," Kwon is reported to have said.
A consortium of banks, former creditors and now owners following a bail out, sold a 6.7 percent in stake in Hynix for about $814 million mid-March, as part of a plan by the group led by Korea Exchange Bank (KEB) to unload a total of 13 percent of the company this year.
Kwon said he expects renewed interest in the sale and that he plans to repay 1 trillion won (about $880 million) before the end of the year, the reports said. Hynix has debts of about 7 trillion won.
Kwon also said Hynix's joint venture with Numonyx in Wuxi, China where the two companies own a wafer fab, would end as a result of Micron Technology's acquisition of Numonyx, according to one report.
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