SKC will acquire KCF Technologies (KCFT), a major manufacturer of battery copper foil for electric vehicles.
SKC announced on June 13 that it has decided to acquire a 100 percent stake in KCFT for 1.2 trillion won (US$1.14 billion) and signed a share purchase agreement (SPA) with global private equity firm Kohlberg Kravis Roberts (KKR). KCFT will start fresh as a subsidiary of SKC after due diligence and other required processes.
SKC CEO Lee Wan-jae said, "We will use this acquisition as a catalyst for deep change of SKC. We will enhance corporate value and contribute to strengthening competitiveness of the Korean materials industry."
Copper foil is a thin film made of copper. A key material for secondary battery cathodes, it requires a high precision process technology. SKC explained that KCFT has the world's best technology for manufacturing of secondary battery copper foil. Its customers include major battery makers around the world. Last month, the company showed its technological prowess by using its proprietary technology to mass-produce 4.5㎛ thick copper foil, which is one-thirtieth of the thickness of a human hair, in a 50 km roll, a new world record. KCFT is the only company capable of producing ultra-thin, high-strength products.
The copper foil market is expanding rapidly due to an increase in demand for electric vehicle batteries. SKC plans to expand its production capacity to three times by 2022.