Important changes to the company structures in Korea

Dear business partners,

as Managing Director of the Sung Rim Europe GmbH it is a pleasure for me to inform you about important structural changes of our shareholder company in Korea.

As you already have taken note of, the Sung Rim Co., Ltd. Korea has been renamed to Quartz Materials Co., Ltd. in November last year. In the course of that action, Mr. Jung Min Kim – as Co-founder and President - resigned from the enterprise. On account of different views of both shareholders about the further strategical alignment of the company, it came now consistently to a subdivision of the Quartz Materials Co., Ltd. into two separate enterprises : By means of a spin-off of machinery, employees, know-how, inventories etc., Mr. Jung Min Kim founded the Hae Sung Co., Ltd. which is operationally been managed by (the for many years from the Sung Rim Co., Ltd. well known) Messrs. S. Y. Moon (commercially) and S. S. Yong (technology).

Based on the fact, that the Hae Sung Co., Ltd. production and processes make use of the same employees and the same equipment as before, we can make sure to 100% that there will be no changes with regards to the product quality. The certification according to ISO-norms are on the way and will be accomplished by the end of February. Moreover, you will not recognize any impact on the terms and conditions, leadtimes and logistics procedures. Finally, I will remain your well-known and sole contact. In this respect nothing will change for you concerning the offer process or the invoicing and payment conditions and procedures either.

In the essentials you will perceive the change only by the name change on the packinglists added to your goods (Quartz Materials Co. , Ltd. => Hae Sung Co., Ltd.).

With this step the end of the last year initiated restructuring of the Sung Rim Co., Ltd. will be completed and we are sure not only to protect herewith the well-known high quality and the security of supply of the past years, but to get into the position to further optimise it. On this goal we will align our overall efforts. From now on, Hae Sung Co., Ltd. is the exclusive korean supplier for quartz products sold via Sung Rim Europe to the European customer base. However, we would kindly like to point out, that orders which are actually in process with Quartz Materials Co. Ltd., will be completed by this entity. Thus you will – for a transition period of several weeks – notice overlappings in supply origin. Newly placed orders are now under control of Hae Sung Co., Ltd. We appreciate your kind understanding for this situation. Customers with consigned inventory will not see any impacts, due to these inventories will be taken over into the responsibility of Hae Sung Co., Ltd.

At the same time we would like to thank you for your trust in us during the last ten years and we look forward to a further successful cooperation with you !