Episode 95: Review Committee
Chairman Lee Cheol-song, having finished tapping the gavel, began to speak.
“Today’s agenda is to discuss the permit for the titanium dioxide factory establishment project. I’d like the review department to start with the proposal explanation.”
The head of the Incheon City Industry Support Department stood up and briefly explained the proposal.
“First, I’d like to hear the internal review opinions on the agenda from the secretary. The internal review only judged the legal standards and did not suggest or conclude directions, so please judge based on the proposal and reference materials.”
After the secretary’s explanation, Chairman Lee Cheol-song spoke about the additional proceedings.
“After the review, we will have a Q&A session related to this agenda. If you have any questions, please ask regardless of seating order. Then, let’s start with the briefing from Taeyang Chemical.”
Nam Tae-hoon’s side stood up first and started the presentation.
“Our company plans to establish facilities surpassing the size of Samyang Chemical’s Ulsan factory, preparing facilities for over 30,000 tons of titanium dioxide annually. Through this, we aim to achieve complete domestic production of titanium dioxide, realize economies of scale, significantly lower prices, and create 2,000 jobs…”
After a 10-minute explanation, Professor Kim Hee-gap from Songdo University, an expert in the industrial field, began to ask questions.
“In that case, how do you respond to the criticism that the sulfuric acid process is less efficient than the chloride process? As I understand it, the efficiency of the sulfuric acid process is at most around 85%, whereas the chloride process achieves over 90%. Moreover, there are significant questions about its refining capabilities.”
Executive Director Kim from Taeyang Chemical, responsible for technical tasks, responded.
“We acknowledge that the sulfuric acid process is more challenging to refine compared to the chloride process. However, recent advancements in environmental facilities and wastewater treatment technology have made significant improvements possible. The difference in loss rates between the processes can be covered by achieving economies of scale. Any shortcomings in purity or quality can be supplemented by expanding additional refining facilities.”
Chairman Lee Cheol-song, flipping through the documents again, tilted his head.
“Hmm. That wasn’t mentioned in the draft. Do you have any technical proof for that?”
“We couldn’t submit it by the deadline due to time constraints, but we plan to benchmark DuPont’s dust collection facilities. Research results show that upgrading the dust collection equipment according to the new plan can improve the leakage rate to over 90%. Please take a look.”
Nam Tae-hoon handed out the prepared documents as if he had been waiting.
After reading the documents, the committee members nodded.
Later, Professor Park Man-gi from Bupyeong University, an expert in economic evaluation, asked the next question.
“Let’s move past that part and discuss the economic aspect. According to Taeyang Chemical’s factory expansion plan, the construction cost for the expansion in Juan is estimated at around 10 billion won, which is a significant amount. How do you plan to raise the funds for this?”
“We have already reached an investment agreement with Shinil Bank. They positively evaluated our plan, and Taeyang Group also agreed to invest an amount equivalent to 30% of our shares.”
The committee members showed immediate interest.
“Oh, from Taeyang Group?”
“Yes, Taeyang Group promised full investment in a joint venture format. The business intent letter has already been legally reviewed and notarized.”
Encouraged by the reactions, Nam Tae-hoon quickly added.
“Additionally, we plan to install a transition metal doping process. By selling not only titanium dioxide itself but also its byproducts as finished products, we can streamline the process and maximize income.”
Despite the continuous exchanges, Nam Tae-hoon’s responses were smooth.
Watching the conversation between the review committee and Nam Tae-hoon, Director Seo swallowed a sigh.
“They seem well-prepared despite the short preparation time. As expected of Taeyang Group.”
“Don’t worry. We are not to be underestimated either.”
Lee Chang-jin calmed his nervous employees. When the Q&A session ended, it was finally Lee Chang-jin’s turn.
The chairman raised his hand and spoke to Lee Chang-jin.
“Next, we’ll have a briefing from Daese Chemical. Representative Lee Chang-jin, please stand.”
“Yes. Please look forward.”
Lee Chang-jin placed the prepared documents on the overhead projector.
<Proposal for the Establishment of Daese Chemical Co., Ltd. Titanium Dioxide Factory>
- Overview of the establishment of the titanium dioxide factory
○ Business Entity: Daese Chemical Co., Ltd. (Representative: Lee Chang-jin)
○ Factory Location: Sangok-dong, Bupyeong-gu, Incheon City, and nearby U.S. military sites
○ Facility Capacity and Total Project Cost: 50,000 tons/year, 4 billion won
○ Preparation Period: Up to 2 years from the permit date
During the briefing, the committee members focused without making a sound.
“That concludes my explanation. If you have any questions, please feel free to ask.”
As soon as he finished speaking, an elderly man raised his hand.
“I am Assemblyman Lee Yoon-sang, in charge of water and sewage facilities. The area where the factory is planned to be established has a significant resident population. Moreover, with the U.S. military’s gradual withdrawal, there are concerns about the supply of industrial water. If a chemical factory is established, it could harm nearby residents. How do you plan to address this?”
Having prepared for this question, Lee Chang-jin immediately responded.
“You don’t need to worry about that. The water required for the chemical factory is about 100 tons a day, and the water supply from the Bupyeong area is sufficient for drinking purposes. We can use nearby groundwater for titanium dioxide production.”
“Groundwater, you say?”
“Yes. Geological surveys confirmed high-quality groundwater beneath the surface. It is rated as Grade 1, and the quantity meets the supply standards. We received a confirmation from a specialized firm that drawing 600 tons of water per day poses no issues for the groundwater veins.”
Lee Chang-jin showed the review committee copies of the confirmation he had prepared.
Next, Professor Kim Hee-gap from Songdo University, an expert in the industrial field, continued the questions.
“I heard that there are densely populated residential facilities planned or being sold near the factory site, like Bupyeong Industrial Complex and Sangok Jugong. It’s unfortunate that no measures have been taken to consider the residents’ convenience and protect the natural environment in the factory establishment. What are your thoughts on this?”
Lee Chang-jin immediately countered the sharp question.
“That’s not true. During the factory establishment review, we prepared an environmental impact assessment report. This included reviewing whether factory establishment restrictions were necessary to protect the living and natural environment of the area, and it is comprehensively reflected in the proposal. Moreover, we have already received legal reviews regarding the factory establishment restrictions through our lawyers.”
Despite the continued questions, Lee Chang-jin’s answers were smooth. During the ongoing Q&A session, Koo Jin-young, a review committee member from the Ministry of Environment, raised his hand.
“You mentioned earlier that there is a significant difference in refining levels between the sulfuric acid and chloride processes. Honestly, from my perspective, I don’t see the difference. Is there any significant difference if the refining process is done correctly?”
Lee Chang-jin smiled meaningfully at the question. It was the question he had been waiting for.
“You might think that way. So, I brought samples. This is titanium dioxide produced by the chloride process. And this is titanium dioxide made by the sulfuric acid process.”
Lee Chang-jin showed two bags of white powder he had prepared.
“This is titanium dioxide we procured from the market, produced by Taeyang Chemical. And this is titanium dioxide made by the chloride process, brought directly from Mexico.”
The powder in the bags Lee Chang-jin held up had visibly different colors. The one made by the chloride process was as white as snow, while the one made by the sulfuric acid process had a slightly yellowish tint. There were also slight differences in density and impurity content.
Lee Chang-jin explained the differences using magnified microscope images.
“Look here. The product made by the sulfuric acid process contains impurities, whereas the product made by the chloride process is clean. Therefore, it is entirely safe for the body. If additional refining processes are applied, they might look similar. But fundamentally, there is a difference.”
After showing the demonstration, Lee Chang-jin put the titanium dioxide powder into his mouth and swallowed it with water.
“What the…!”
“What are you doing?!”
The committee members were shocked by the unexpected action.
However, Lee Chang-jin calmly swallowed the remaining water and continued speaking.
“As you can see, this product is safe enough to consume without any additional treatment after production. Unlike other factories, we plan to build a factory that processes semi-finished products that have undergone the chloride process, so there are no pollution issues from the chloride process. Additionally, the titanium dioxide (TiO2) powder, which acts as a catalyst, quickly and effectively removes harmful substances from the human body or environment, such as organic halogen compounds, foul-smelling gases, oil, bacteria, and algae. Just like this.”
Lee Chang-jin had prepared wastewater brought in, and he sprinkled titanium dioxide on it.
People were amazed to see the water clear up instantly.
“Titanium dioxide extracted from the chloride process is used for purifying wastewater, landfill leachate, exhaust gases, indoor air purification, lighting equipment, sanitary ware, and environmental improvements like antibacterial and deodorizing effects. In other words, it is useful for purification rather than pollution.”
Yeo Jin-ju, who attended with him, handed out the prepared materials one by one. The color-copied photos and PPT materials stood out.
“In fact, many industries are harmful to the human body. Textile and paper manufacturing also discharge wastewater. Even the steel industry, considered the flower of industry, emits heavy metals. So, I’d like to ask the committee members. If we can produce products domestically that are currently entirely imported, wouldn’t that contribute to national competitiveness? Moreover, the chloride process we chose has much better refining capabilities than the sulfuric acid process, making it safer. Most importantly, monopolizing strategic materials by one company ultimately raises the supply cost. It is natural that there is a difference when comparing our product, which requires no additional refining, with the sulfuric acid process product that needs complex refining. Even with additional refining, producing products as pure as ours would be physically impossible.”
Unable to bear Lee Chang-jin’s attack, Nam Tae-hoon stood up angrily.
“I object! Daese Chemical is misleading public opinion with false information. We also clearly stated that we would build additional desulfurization facilities. Moreover, the titanium dioxide we produce is also a proven safe product. As the impurity concentration is below the standard, there is no significant difference when consumed.”
Lee Chang-jin nonchalantly countered.
“Let me give you titanium dioxide produced by the sulfuric acid process. Can you consume it right now? If you do, I will acknowledge your point.”
“Hah, what nonsense is that…!”
Nam Tae-hoon trembled but couldn’t bring himself to do it. Titanium dioxide produced by the sulfuric acid process dissolves in sulfuric acid solution and is then obtained through thermal hydrolysis, so even after washing, it was uncomfortable to drink it.
Seeing Nam Tae-hoon’s defeated expression, Lee Chang-jin smiled meaningfully.
- To be continued in episode 96 -
