SKC is expected to wrap up the acquisition of copper foil maker KCFT early next month. When the acquisition process is completed, SKC is planning to promote the establishment of KCFT’s production facilities in Europe.
SKC is speeding up its business reorganization, including the separation of its chemical business division. The company is expected to pursue a more aggressive strategy after taking over KCFT, the world's No. 1 automotive battery copper foil producer.
The first candidate country for KCFT’s overseas expansion is Poland, where SKC and Mitsui Chemicals of Japan jointly operate MCNS. The joint venture company has an idle plant site where SKC can build a factory anytime. KCFT currently has a factory in Jeongeup in North Jeolla Province of Korea, and has never made a foray into overseas countries.
If KCFT's new plant is established in Poland, it will be easier for KCFT to cooperate with SK Innovation’s battery plant in Hungary. As KCFT is also considering trading with Korean battery companies other than SK Innovation, it can partner with LG Chem's Polish plant and Samsung SDI's Hungary plant. In addition, Poland and Hungary are regions where many global automakers and Chinese battery factories are located.
Georgia of the United States is also a candidate for KCFT’s overseas plant. Georgia is home to an SKC subsidiary and SK Innovation's battery factory. If a KCTF overseas subsidiary is established in Georgia, KCTF’s cooperation with SK Innovation is expected to generate more synergies.
China is also as a major candidate region as it accounts for a large share of the global electric vehicle market.