Kolon Industries will establish a joint venture with private equity firm Hahn & Company for industrial film manufacturing.
On Feb. 27, Kolon Industries announced that it was considering establishing a joint venture (JV) with Hahn & Company for its film business and signed a binding memorandum of understanding (MOU) for the establishment of the joint venture.
In detail, the company that Kolon Industries is considering establishing a joint venture with is SK microworks run by a private equity fund (PEF) under Hahn & Company. Kolon Industries and SK microworks are reportedly considering contributing some of their businesses, including industrial film, to the new entity. They are now in talks with the aim of signing the deal in the first half of 2024.
Meanwhile, Kolon Industries’ film industry is suffering from declining demand from all industries and a price war initiated by Chinese companies. The company’s film and electronic materials division posted a cumulative loss of 61.9 billion won from the first quarter through the third quarter of 2023 following an operating loss of 71.1 billion won in 2022.