SEOUL, KOREA - GS Aromatics (Qingdao), the company owned by third- and fourth-generation descendants of the GS Group founding family, will move into the gas station business in China.

 

According to Chongqing Commercial Investment Group, a Chinese state-owned conglomerate, on July 31, its affiliate Chongqing Commercial Investment Petrochemical has signed an agreement with GS Aromatics to build 100 gas stations in the major city in Southwest China.

 

Under terms of the deal, GS Aromatics will acquire a 10-percent stake in the Chinese company and invest up to 2 billion yuan (US$326 million) in new gas station construction, gasoline storage facilities, and existing gas station acquisition for the next two years. Although the detail has not been disclosed, the new gas station network will likely put up the sign of GS-Caltex brand.

 

An affiliate of Winasset, the company whose majority shareholders include the sons and daughters of GS Group founding family members, GS Aromatics (Qingdao) has operations in petroleum retail and others. It had a sales revenue of 470 billion won and a net profit of 1 billion last year.

 

A GS Group official said the deal had nothing to do with the group's main business. "It is impossible to find out the details of business transactions made by members of the owner family. Their business is not related to that of GS-Caltex or the group," he added.