SKC is accelerating its business restructuring efforts, actively pursuing mergers and acquisitions (M&As) and investments, while streamlining its underperforming sectors. The company is transitioning its portfolio from a chemical-focused approach, including films and basic materials, to high value-added businesses such as “secondary battery, semiconductor, and eco-friendly” industries.
According to industry sources on Oct. 15, SKC has been actively engaging in both significant and smaller-scale M&As to pave the way for new business ventures after selling its 1.6 trillion won (US$1.18 billion) business in industrial materials, specifically in the film sector, last year.
In 2020, SKC made a significant leap into the new business arena by acquiring KCFT, which is now known as SK Nexilis, a producer of copper foil, the essential materials for secondary batteries, for 1.2 trillion won.
The share of secondary battery and semiconductor materials in revenue increased slightly from 28.6 percent in 2020 to 33.7 percent in 2021. In the first half of this year, these sectors accounted for around 40 percent of the total revenue, reaching approximately 530 billion won out of 1.3 trillion won. Notably, the proportion of secondary battery materials in revenue surged from 19.5 percent to 27.7 percent compared to 2021.
In October, SKC successfully completed the acquisition of ISC, a semiconductor solutions company, investing 522.5 billion won. In September, the company achieved a stake of approximately 12 percent in the semiconductor packaging company Chiplet. Last month, SKC expanded its business further into environmentally friendly materials after secondary batteries and semiconductors by investing 95 billion won in the U.S.-based company Halio, which specializes in “smart window” technology for controlling the penetration of sunlight and solar heat.
Investments in new business-related facilities are ongoing. Following the acquisition of SK Nexilis, SKC established Plants 5 and 6 at its Jeongeup facility, increasing its production capacity to 52,000 tons. It is also expanding its supply chain to Southeast Asia, Europe, and North America. A 50,000-ton copper foil plant was recently completed in Kota Kinabalu, Malaysia, and a similarly sized copper foil plant in Poland, which commenced construction last year, is scheduled to be completed next year. Additionally, investments are in progress for semiconductor glass substrates in Georgia, the U.S., and a biodegradable material production facility in Vietnam.
SKC is also consistently divesting in basic materials-related businesses, except films. Recently, it sold a 100% stake in SK pucore, responsible for polyurethane raw materials, for 410.3 billion won. In September, its subsidiary SK enpulse sold a total of 88 billion won worth of shares, 75 percent of its semiconductor basic materials business, Wet Chemical Corporation, and 90 percent of its cleaning business corporation. It has also been reported that the company is considering divestment from its fine ceramic business unit.