SKC

● Selling 100% stake in SK Pucore to Glenwood Private Equity, an alternative investment firm, on the 12th

● Securing resources to fund additional  investments ···accelerating a business model innovation drive with focus on EV battery/chips/eco-friendly materials

SKC (CEO & President Woncheol Park)  is selling its polyurethane (PU) ingredient business. This decision will allow SKC to further accelerate its business model innovation drive focused on EV battery, chips, and eco-friendly materials.

SKC decided in a board of directors (BoD) meeting on the 12th to sell 100% stake in SK PUCore to Glenwood Private Equity (Glenwood PE) for 410.3 billion won. The business up for sale also includes the polyurethane ingredient business for optical applications that SKC acquired from Woori Finechem in 2019. Going through necessary procedures, SKC intends to close the deal by no later than the end of the year.

SK PUCore, SKC’s key PU ingredient production subsidiary, has produced polyol, an ingredient for polyurethane, for over 30 years since 1991. SK PUCore has been rapidly expanding its overseas production bases in the United States, China, Poland and Mexico, as one of the two pillars of SKC’s chemical business along with SK PIC Global. The company is also entrenching its presence as a global leader of the PU industry, launching eco-friendly PU ingredient business with the first re-polyol and bio-polyol ever developed in Korea.

SKC decided to sell off the PU ingredient business in a bid to complete its vision as a global material ESG solution company focused on EV batteries, semiconductors and eco-friendly materials. The PU ingredient business needed significant additional investments to cope with a rising market demand and cater for the ever diverse customer needs. Considering its business model innovation vision, SKC decided to make the sale to a company better equipped to fund the growth and development of the industry.

Glenwood PE acquiring SKC’s PU ingredient business is one of the top-tier private equity fund management companies in Korea, known to be making aggressive investments after acquisitions to develop growth drivers and strengthen corporate competitiveness. Glenwood PE is expected to bolster the global competitiveness of the PU ingredient business, maintaining employment stability and making additional investments after taking over SK PUCore.

With the sales proceed, SKC aims to enhance its financial stability and cover investment needs to meet global demand for eco-friendly materials, boost its competitive edge and expand its business presence. SKC is innovating its business model rapidly, dedicating a copper foil plant in Malaysia, investing in biodegradable material production in Vietnam, and acquiring equity in the chip packaging solution provider Chipletz this year.

“We will realign our business portfolio with EV batteries, semiconductors and eco-friendly materials in a bid to lay the groundwork for global expansion and future growth,” said an official at SKC. “We will rapidly complete our business model innovation to grow into a global ESG material solution company representing Korea.” [End]