South Korea's Uni-chem signs deal with Hynix

South Korea's Uni-chem signs agreement with Hynix to buy memory chip plant in US

• By Kwang-Tae Kim, Associated Press Writer
• On 8:32 am EDT, Saturday September 26, 2009

SEOUL, South Korea (AP) -- A South Korean company has reached an agreement with Hynix Semiconductor Inc. to take over a plant that the world's second-largest memory chip maker closed in the United States, an official said Saturday.

Uni-chem Co. signed a memorandum of understanding in August to buy Hynix's memory chip plant and the accompanying land in Eugene, Oregon, for $50 million, Uni-chem Chairman Lee Ho-chan told The Associated Press.

Lee said his company plans to use the plant to make solar cells as part of the company's new business.

Uni-chem provides leather to South Korea's Hyundai Motor Co. and its affiliate Kia Motors Corp. as well as to luxury goods companies Burberry and Coach, according to Lee.

But in August, Uni-chem acquired a 51 percent share of Spire Solar System, a subsidiary of solar power company Spire Corp., and set up Uni-chem Solar in the U.S. state of New Hampshire, Lee said.

Lee said a full contract for the deal with Hynix could be signed next month.

Hynix spokesman Park Hyun said negotiations were under way but no specific details had been decided.

Hynix stopped operating the Oregon plant in September 2008 due to lack of profitability, Park said.

South Korea is a global leader in the semiconductor industry and is also home to Samsung Electronics Co., the world's largest manufacturer of memory chips.

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