Reselling Due to Low Performance
According to the GS Group on Jan. 19, GS Energy has recently decided to resell GSEM’s polymer business unit to GS Caltex and is now discussing specific plans.
In a bid to strengthen its battery material business, GSEM, a wholly owned subsidiary of GS Energy, acquired Samil Polymer, a subsidiary of GS Caltex which produces synthetic resins, in June 2014. The company has made the latest decision to make up for GSEM’s low profits.
GSEM, which produces cathode materials comprised of nickel, cobalt and manganese (NCM), core raw materials of secondary batteries, is suffering from chronic deficits. Since 2011 when the company had an annual surplus of 500 million won (US$411,015), it has since been losing billions of won. In particular, GSEM have had difficulties to secure the competitiveness as a late starter in the battery industry. Moreover, the company’s performance has worsened as battery producers like Samsung SDI and LG Chem have pushed ahead with the vertical integration from materials to products.
In addition to GSEM, the GS Group is continuously setting back in the eco-friendly new energy business, including secondary batteries, overall. GS Energy decided to liquidate GS Platech, GSE WTE and GS Fuel Cell last year. They were subsidiaries of GS Energy in the green growth business sector. GS Platech and GSE WTE treated waste by using plasma gasification technology, while GS Fuel Cell manufactured fuel cells.